US Budget Deficit Narrows Amid Record Customs Receipts
The U.S. reported a $316 billion budget deficit in May, down 9% from the previous year. This decrease is attributed to a surge in customs receipts, which reached a record $23 billion due to new import tariffs. The fiscal year-to-date customs receipts increased by nearly 60%.
The United States government reported a budget deficit of $316 billion for May, marking a 9% decrease from the same month last year. This decline is largely attributed to a substantial increase in customs receipts, which hit a record $23 billion, thanks to President Donald Trump's imposition of steep new import tariffs.
The Treasury Department highlighted that gross customs receipts for the month surged from $6 billion in May 2024 as tariffs on goods from nearly all trading partners started impacting port-of-entry collections significantly. Fiscal year-to-date customs receipts witnessed a rise of nearly 60%, totaling $86 billion. These figures contributed to an overall receipts increase to $371 billion, up 15% from May 2024, although outlays rose to $687 billion.
Adjustments for fiscal calendar shifts saw the adjusted deficit stand at $219 billion, a 17% reduction from the prior year's adjusted deficit. Interest on the public debt dropped by $11 billion to $92 billion compared to the previous year, continuing a trend seen in April.
(With inputs from agencies.)
Google News