The U.S. government ran a $293 billion deficit in May, according to the latest monthly budget statement. The figure, which marks the gap between federal spending and revenue for the month, continues a pattern of large shortfalls this fiscal year.
What the May number shows
May's deficit brings the total for the first eight months of the fiscal year to roughly $1.2 trillion. The government’s outlays in May exceeded receipts by a wide margin, partly due to calendar effects that push certain payments into the month. Revenue collections have been weaker than expected, while spending on mandatory programs and interest on the national debt has risen.
Through the first eight months of the fiscal year (October through May), the deficit is running about $100 billion higher than the same period last year. The Congressional Budget Office projects the full-year shortfall will exceed $1.5 trillion. That estimate, however, was made before the latest monthly data was released.
Why deficits matter
Persistent deficits add to the national debt, which now tops $34 trillion. Higher debt can push up borrowing costs for the government and the private sector. The Treasury Department is expected to release its next quarterly refunding announcement in August, which will detail upcoming borrowing needs.
No further details on specific spending or revenue categories were provided in the May statement.
