US Budget Deficit Nearly Doubles in August: Treasury Dept Cites Holiday Schedule

A Treasury report shows the budget deficit exploded higher in August. The Treasury blames a holiday calendar

The Monthly Treasury Report does not look pretty.

The US government ran a $214 billion budget deficit in August of 2018 compared with a $107.7 billion budget deficit in August 2017. The report shows a 30% rise in outlays.

Monthly Receipts vs. Outlays

Receipts by Source, Outlays by Function

Holiday Excuse

Outlays for Military active duty and retirement, Veterans' benefits, Supplementary Social Security Income, and Medicare payments to Health Maintenance Organizations and prescription drug plans accelerated into August, because September 1, 2018, the normal payment date, fell on a non-business day. Social Security benefits also accelerated into August since September 3, 2018, the normal payment date, fell on a holiday

Excuses or not, things are ugly. Deficits and the national debt both are up.

Gross Public Debt

Curiously, Trump proposed using tariffs to reduce the national debt. The idea is downright laughable.

For discussion of Trump's plan and a look at why debt nearly always rises more than the deficit projects, please see Exploring Trump's Claim of Using Tariffs to Pay Down $21 Trillion in Debt.

Mike "Mish" Shedlock

Comments
No. 1-6
Blacklisted
Blacklisted

THE PROBLEM IS GOVT, SPECIFICALLY, FRAUD, CORRUPTION, AND MALINVESTMENT OF THE ESTABLISHMENT, WHICH IS LEADING TO THE BIGGEST PROBLEM OF ALL, THE LOSS OF CONFIDENCE.

Wait until the interest expense exceeds military spending by 2021. You will see govt taxing anything that moves to try to save their perks and power. Maybe, they will start taxing beards again.

With the rational ignorance of the Left, you know they will try to tax carbon if the Dems take control of CONgress. They will also try to ban guns to force their will on the masses, which is why we are headed for another Civil War. All because career politicians are incapable of looking in the mirror and admitting their mistakes or implementing real reforms, like Trump is attempting. Establishment hacks will fight reforms to their dying breath, which I'm sure the real patriots of this country have no problem with.

KidHorn
KidHorn

I buy the gov't explanation. Maybe not 100%, but paying out in August what would normally be paid in September certainly contributed a large a part of the increase.

channelstuffing
channelstuffing

That's the gov't number (cooked)the real deficit prob double that once the scam accounting gimmicks are factored out,which means only one thing .....massive QE and wait for it.......NIRP!

Realist
Realist

This is what happens when you elect the "King of Debt" to be president. I'll bet Trump's supporters actually believe he is paying down the debt with his tariffs (taxes). Meanwhile, he will be raising the debt a trillion/year while the US economy is in the ninth year of economic expansion. As Bam Man said, what happens when the next recession hits. The deficit will be well over 2 trillion/year then. As always, I feel sorry for Americans.

2banana
2banana

Obama added more to the deficit than all other administrations combined and accounting for inflation.

And despite all that spending - the economy was anemic with growth never over 3%.

So is DJT on track to beat that dubious record or not?

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