US : May budged deficit offsets April’s surplus - Wells Fargo

Large federal tax collections in April were partially offset by the biggest May deficit since 2009, explained analysts at Wells Fargo. They see that budget deficit looks likely to rise by about $100 billion from last fiscal year.

Key Quotes:

“The federal budget deficit in May was $146.8 billion, offsetting much of the record setting $214.3 billion surplus seen in April. Fiscal year to date, federal revenue growth is up 2.6 percent, led by the strong individual income tax collections experienced in April.”

“Spending growth has continued unabated, and is running at a 5.9 percent pace fiscal year to date.”

“Today’s data reaffirm our call that the FY 2018 budget deficit will climb by about $100 billion from the FY 2017 deficit of $666 billion.”