The Federal Budget deficit increased last month by a slower pace than in previous months: according to the recent publication of the Monthly Treasury Statement, the U.S government deficit increased in September 2011 by $64.5 billion; this is a decrease of $69.6 billion from the $134.154 billion deficit recorded in August 2011, and an increase from the $43.626 billion in September 2010.
The current deficit in the fiscal year of 2011 is $1,298 billion, which is higher by 0.33% than the $1,294.2 billion deficit recorded during the same time span in 2010. Up to September, there was an increase in revenues of 6.5% in 2011 compared with 2010’s that put a small dent in the deficit growth. On the other hand, there was also a moderate increase of 4.2% in total expediters in 2011 compared with the parallel time in 2010 that contributed to the growth of the deficit.
At the current rate, the Federal budget’s deficit in fiscal year of 2011 represents nearly 9% of US’s GDP in 2011.
The financial markets didn’t seem to react much to this news as the U.S stock markets inclined during the day this report was published.
For more on this subject:
- Weekly Outlook for October 10-14
- Gold and Silver Prices Monthly Outlook for October 2011
- US Federal deficit grew by $134 billion in August
- US Federal deficit grew to $129 billion in July