US Budget Deficit Widens to 3.2% of the GDP in FY 2016


The US government posted a USD 33 billion budget surplus in September of 2016, a 63.7 percent fall from a USD 91 billion surplus in the same month a year earlier but above market expectations of a USD 25 billion surplus. For the 2016 fiscal year, the country's budget deficit widened to USD 587 billion or 3.2 percent of the GDP, the highest in three years.

In September of 2016, receipts totaled USD 357 billion, up 2 percent year-on-year as individual income taxes accounted for USD 160 billion, social security and other payroll taxes for USD 93 billion, corporate income taxes for USD 66 billion and other taxes and duties for the remaining USD 37 billion. Outlays totaled USD 323 billion, 18 percent higher than a year earlier as social security accounted for USD 77 billion, Medicare for USD 69 billion, defense for USD 60 billion and other outlays accounted for the remaining USD 134 billion. 

Considering the 2016 fiscal year, revenues increased 1 percent to USD 3267 billion while outlays rose at a faster 5 percent to USD 3854 billion. Revenue growth was reduced by the retroactive extension of some expired individual and corporate tax deductions. In FY 2015, the country recorded a USD 439 billion gap, equivalent to 2.5 percent of the GDP.

US Budget Deficit Widens to 3.2% of the GDP in FY 2016


US Treasury | Joana Taborda | joana.taborda@tradingeconomics.com
10/14/2016 8:57:06 PM