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

• The November U.S. budget deficit jumped by $57Bn or 30% from a year earlier to $249Bn, a record for the month, as revenues fell and outlay for education, healthcare and interest on the public debt rose sharply, the U.S. Treasury said on Monday.
• Receipts for November fell 10% or $29Bn from a year earlier to $252Bn, while outlays rose 6% or $28Bn to $501Bn, also a November record.
• Driving the revenue decline was a 4% drop in individual withheld tax receipts, a 64% increase in individual tax refunds and a 98% decline in Federal Reserve earnings.
• The outlays were driven by a $14Bn, or 18% increase in Medicare costs, and an $11Bn, or 94% 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% or $19Bn during November, but this was largely offset by a $17Bn 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 $48Bn, or 87%.
• The Treasury's deficit for the first two months of fiscal 2023 was down 6%, or $20Bn, to $336Bn, with outlays down 2% and revenues up 1% compared to the year-earlier period.

(Source: Reuters)