U.S. November deficit rises sharply as revenues fall, outlays jump

WASHINGTON  – The November U.S. budget deficit jumped by $57 billion or 30 percent from a year earlier to $249 billion, a record for the month, as revenues fell and outlays for education, healthcare and interest on the public debt rose sharply, the U.S. Treasury said on Monday.

Receipts for November fell 10 percent or $29 billion from a year earlier to $252 billion, while outlays rose 6 percent or $28 billion to $501 billion, also a November record.

Driving the revenue decline was a 4-percent drop in individual withheld tax receipts, a 64-percent increase in individual tax refunds and a 98-percent decline in Federal Reserve earnings.

The outlays were driven by a $14 billion or 18 percent increase in Medicare costs, and an $11 billion or 94 percent increase in education costs due to changes in direct student loan programs and public service loan forgiveness, a Treasury official said.

The Treasury’s interest costs on U.S. public debt grew 53 percent or $19 billion during November, but this was largely offset by a $17 billion decline in tax credits for children and low-income workers. For the first two months of fiscal 2023, the Treasury’s interest payments are up $48 billion, or 87 percent.

The Treasury’s deficit for the first two months of fiscal 2023 was down 6 percent, or $20 billion, to $336 billion, with outlays down 2 percent and revenues up 1 percent compared to the year earlier period.