The Fiscal 2017 Deficit Through June

The chart below tracks the monthly surplus or deficit recorded by the U.S. government for Fiscal 2017, which ends on September 30, 2017.

The deficit for June 2017 was $93 billion higher than June 2016. Since July 1st fell on Saturday, certain payments that would typically have occurred in July were paid in June. This accounted for $44 billion of additional June spending. Excluding the timing difference, the June deficit was $49 billion more than June 2017.

Overall, revenues for the first nine months of Fiscal 2017 were 2% more than Fiscal 2016, but total spending increased by 6%. This mismatch of spending growth in excess of revenue growth is fueling a larger deficit. Although the Congressional Budget Office (CBO) initially projected the Fiscal 2017 deficit would be less than Fiscal 2016, the CBO now expects the current deficit will be $109 billion more than last year.

Are you concerned that spending is increasing by 6% while revenues are increasing by 2%?