Fiscal 2020 Deficit Through January

The graph below compares the U.S. federal deficit by month to the prior fiscal year. Through the first four months of Fiscal 2020, the U.S. deficit was $388 billion, which is $78 billion more than Fiscal 2019.

The deficit for January 2020 increased by $55 billion due to February payments that were made in January. It was a timing shift that occurred because February 1 was a Saturday. A similar timing shift will occur in February, since March 1 will fall on Sunday. These timing shifts will equalize by the end of March, which is halfway through the fiscal year.

Excluding the $55 billion timing shift, the Fiscal 2020 deficit is approximately 7.5% higher than last year. Based on current projections, the U.S. deficit will exceed $1 trillion, which hasn’t happened since 2012.