US faces budgetary deficit of $211 billion

By Al Mayadeen English
Source: Agencies
11 Aug 2022 12:42

Following the expiration of pandemic-related aid in June, the US Treasury Department is still facing high budget deficits due to major spending.

US Department of Treasury (The New York Times)

According to reports released Wednesday by the Treasury Department, the US federal budget deficit stood at $211 billion in July, with total receipts amounting to $269 billion against outlays of $480 billion.

In numbers: Where the deficit came from

Per the report statements, individual income taxes were $128 billion, while social insurance and retirement came in at $108 billion. As for the outlays, social security spending was $103 billion, however, while health and Medicare were at $72 billion and $67 billion, respectively.

June reported a deficit of $426 billion, following the expiration of pandemic-related programs and aid.

Outlays refer to the amounts spent by the government, as opposed to the receipts that represent the income that the government is receiving. Thus when spending is greater than what the income is, a budget deficit becomes an issue of the national debt.

No sign of US recession?

The calculated total deficit came to almost $726 billion since the beginning of the 2022 fiscal year that began October 1st.

For the fiscal year 2022, total receipts were $4.1 trillion against outlays of approximately $4.8 trillion, per the figures.

US Treasury Secretary Janet Yellen stated in July that there is no indication of a recession in the US economy but that the country was experiencing a national "necessary and appropriate" slowdown.

Although Secretary Yellen revokes claims of a near recession, economic indicators prove otherwise, as consequences have rolled over in the past year. The US has seen food and baby formula shortages, inflation, a gas crisis, and sanitary product deficiencies, not to mention an exponential increase in prices all over the nation. The fallouts of the US economic deficit are resembling a domino effect, despite government denial of any recession or crisis, with housing and a mortgage crash anticipated to come next.

According to the US Department of the Treasury website, the Monthly Treasury Statement of Receipts and Outlays of the United States Government, known as MTS, is usually released on the 8th workday of the month following the reporting month.