US starts 2027 fiscal year with record October budget deficit of $404 billion
SPY•The US reported a record October budget deficit of $404 billion, up $120 billion, or 42%, from a year earlier. Receipts fell 9% to $369 billion, while outlays rose 12% to a record $773 billion.
1. Record monthly deficit
The US government started the 2027 fiscal year with a $404 billion budget deficit in October, a record for the month and $120 billion, or 42%, higher than a year earlier. Receipts fell $35 billion, or 9%, to $369 billion, partly because net customs duty collections were lower.
2. Spending and adjustments
Outlays reached a record $773 billion, up $84 billion, or 12%. USDA spending rose $14 billion, or 80%, partly due to farm relief payments, while military spending increased $28 billion, or 30%, including a payment to military trust funds delayed by the previous year's government shutdown. Gross interest on federal debt rose $11 billion, or 11%, to $115 billion. After calendar-related adjustments for benefit payments shifted into October, the deficit was $285 billion, up $94 billion, or 49%, from a year earlier.
