Treasury Department says U.S. government ran $98 billion deficit in July

In an official Daily Treasury Statement and Monthly Treasury Statement, the Treasury Department’s Financial Management Service (FMS) said that the United States federal government ran a deficit of $98 billion and increased from the month prior.

The FMS stated, however, that the national debt remains exactly at $16,699,396,000.00 for the entire month of July, which is $25 million below the legal debt limit legislated by Congress and passed into law by President Obama.

It was reported this past spring that Treasury Secretary Jack Lew issued a letter to House Speaker John Boehner noting that he would begin to implement a series of measures in order to refrain the government from surpassing the debt limit, such as using the civil service retirement and disability fund and a similar retirement fund for postal workers and end the selling of State and Local Government Series non-marketable securities until further notice.

What should be noted, though, is that the U.S. national debt on USDebtClock.org is shown as climbing ($16.9 trillion at the time of this writing) – it was reported Wednesday that if liabilities are taken into account then the real national debt figure is about $70 trillion.

The U.S. government mostly runs budget deficits in the month of July due to a paucity of tax deadlines and the usual summer slowdown. Nevertheless, analysts that were polled by Reuters had projected the deficit to be $96 billion.

Many are expecting the U.S. budget deficit to dip substantially in this fiscal year. For instance, in the past 10 months, the government has posted a $607 billion budget deficit, which is a lot lower than the $974 billion deficit run in the previous fiscal year. The reason, according to government officials, is higher tax rates, minor budget cuts and slight growth in the national economy.

Like this article? Get ECN delivered to your inbox daily. Subscribe here.

Leave a Comment