US Budget Surplus Widens in September


The US government budget surplus went up to USD 119 billion in September 2018 from USD 8 billion in the same month of the previous year. Figures came above market expectations of USD 71 billion, mainly due to a sharp decline in expenses as outlays for Military active duty and retirement, Veterans' benefits, Supplementary Social Security Income, and Medicare payments to Health Maintenance Organizations and prescription drug plans accelerated into August, because September 1, 2018, the normal payment date, fell on a non-business day. Social Security benefits also accelerated into August since September 3, 2018, the normal payment date, also fell on a non-business day.

Outlays declined 34.1 percent from a year earlier and totaled USD 224 billion, as social security accounted for USD 58 billion, defense for USD 54 billion, Medicare for USD 26 billion and other outlays for USD 93 billion, while interest on debt represented USD -7 billion.

Meantime, receipts decreased at a softer 1.5 percent to USD 344 billion, as individual income taxes accounted for USD 162 billion, social security and other payroll taxes for USD 100 billion, corporate income taxes for USD 42 billion and other taxes and duties for USD 40 billion.

When accounting for calendar adjustments, the government's surplus was USD 59 billion compared to USD 56 billion in the same month of the previous year.

The gap for the full fiscal year 2017/18 was USD 779 billion, compared to a shortfall of USD 666 billion in the previous fiscal year 2016/17. It was the biggest budget deficit since 2012. Outlays went up 3.2 percent to USD 41087 billion while receipts increased a meager 0.4 percent to USD 3329 billion. 

US Budget Surplus Widens in September


US Treasury | Gabriela Costa | gabriela.costa@tradingeconomics.com
10/16/2018 10:52:25 AM