US Government Posted $189.65 Billion Total Budget Deficit In May
11 June 2009 - 4:31AM
Dow Jones News
The U.S. government spent more than it made in May, putting the
federal budget deficit so far this year just shy of the telling $1
trillion mark.
The excess of spending over revenue was $189.65 billion in the
eighth month of fiscal 2009, the Treasury Department said
Wednesday. The May 2008 deficit totaled $165.93 billion.
It was the largest deficit ever in May. Typically, the
government is in the red that month.
A survey of economists by Dow Jones Newswires forecast a May
deficit of $180.0 billion. The Congressional Budget Office went a
little higher, predicting $181 billion.
For the first eight months of fiscal 2009, the budget shortfall
totaled $991.95 billion, compared with $319.40 billion in the same
period a year earlier.
The $991.95 billion number reveals the state of government
finances, sent ballooning by the financial crisis and recession.
It's more than double the entire fiscal 2008 deficit of $454.8
billion, which was a record high.
The White House predicts the deficit will climb to $1.841
trillion this fiscal year.
Fiscal years start Oct. 1.
May federal government spending totaled $306.89 billion,
compared to $290.20 billion in May 2008.
Year-to-date federal government spending totaled $2.37 trillion,
compared with $1.99 trillion in the first eight months of fiscal
2008.
Gross spending on the Troubled Asset Relief Program totaled
$177.68 billion year to date. Jobless benefit outlays totaled $65.5
billion.
Interest payments on the national debt year to date were $132.56
billion. Defense spending ran at $438.79 billion. Veterans benefits
were $63.07 billion. Social Security totaled $450.37 billion.
The Treasury report said it bought $9.9 billion in agency
mortgage-backed securities during May; year to date, purchases
totaled $140.60 billion. Treasury became the buyer of last resort
for these bonds when it announced the takeover of Fannie Mae (FNM)
and Freddie Mac (FRE) in early September.
May federal government receipts totaled $117.2 billion, down
from $124.3 billion a year earlier.
Year-to-date federal government revenues totaled $1.37 trillion,
compared with $1.67 trillion for the first eight months of fiscal
2008. Individual income-tax receipts totaled $592.6 billion,
compared with $769.2 billion. Corporate taxes totaled $69.4
billion, compared with $178.2 billion.
The Treasury said it plans to release budget data for June on
July 13, 2009.
-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater@dowjones.com