WASHINGTON—The federal government ran a $284 billion budget deficit in the first month of the fiscal year, more than double the monthly shortfall a year ago, the Treasury Department said Thursday.
The U.S. budget gap rose 111% in October, due to higher federal spending last month on health-care and safety-net programs, and lower federal tax collection, according to monthly Treasury data. Government outlays rose 37% to $522 billion, while revenue declined 3.2% to $238 billion.
Over the 12 months ending in October, the U.S. continued to run a deficit about three times as large as it was over the previous year as it continues to combat the coronavirus pandemic. The 12-month budget gap totaled $3.3 trillion last month, about 15.5% of gross domestic product.
Federal deficits have climbed this year as Congress enacted emergency measures, including stimulus payments and loans to small businesses, to cushion the U.S. economy from the effects of the pandemic. Automatic spending on health care, food assistance and jobless benefits have also pushed up outlays, while tax revenues have declined amid widespread layoffs and weaker consumer demand.
Spending by the Department of Health and Human Services rose 50% last month, including a 76% increase in Medicare spending and 20% higher spending on Medicaid. Spending on Social Security also rose 9%, military spending increased 12% and Veterans Affairs department spending climbed 70%. Treasury outlays declined 7%, due in part to lower costs on the federal debt, which totaled $21 trillion at the end of the month.
