WASHINGTON - The federal government posted a $129.4 billion budget deficit for July, down 22% from the $165 billion deficit of July 2010.
Most of that difference, however, was due to a calendar shift which pushed about $28 billion of monthly outlays into July 2010 because August 1 fell on a weekend. Those include Social Security, military pay and veterans’ benefits.
If those payments are excluded, then the 2011 July deficit is $8 billion less than July 2010, or 6% lower.
In June, the government ran a $43.1 billion deficit.
Revenues for July were $159 billion, up $4 billion or 2% from the previous year. Outlays fell $32 billion or 10%.
Economists polled by Thomson Reuters had a median deficit estimate of $136.2 billion. The Congressional Budget Office predicted a $132 billion deficit in its August 5 monthly report.
The federal deficit was $1.100 billion for the first ten months of FY2011, down $69 billion or 6% from the July 2010 year-to-date deficit.
This July’s revenues appeared higher partly because a $4 billion reduction in individual and corporate income tax refunds shows up in the accounts as more income. The CBO said there was also a significant increase in individual income tax withholding and payments.
After adjusting for the calendar shift, this July’s outlays would be just $4 billion or 1% higher than last year
