The U.S. government’s budget deficit surged in May from the same time a year ago, as federal revenues declined and Medicare spending soared, new Treasury Department data revealed.
According to the Monthly Treasury Statement, the May shortfall surged to $240 billion, up from $66 billion a year earlier. The consensus estimate was a $236 billion deficit. In April, the Treasury reported a $176 billion surplus.
In the first eight months of the current fiscal year, the cumulative deficit totaled $1.165 trillion, up from $426 billion last year.
Treasury figures found that revenues declined 21 percent year-over-year to $307 billion, with higher tax return payments and non-withheld individual income taxes amid a softening economy slashing receipts. Outlays surged 20 percent from May 2022 to $548 billion, driven by a substantial increase in spending for the government-run Medicare health program for seniors….