US Budget Deficit Falls 30 Percent in February, as Economy Recovers

The U.S. government posted a $217 billion deficit in February, a 30% reduction from a year ago as receipts grew and outlays fell, largely as a result of economic recovery from the COVID-19 pandemic, the Treasury Department said on Thursday.

The Treasury said that receipts in February reached $290 billion, up 17% from February 2021, when the government posted a $311 billion deficit -- a record high for the month as federal unemployment supplements and other support payments to individuals and businesses were being disbursed.

Outlays in February this year totaled $506 billion, down 9% from the year-ago period as a result of lower unemployment compensation and other COVID-19 aid benefits.

The Treasury said it recorded strong February increases in individual withheld taxes as well as in other individual and corporate taxes compared to a year earlier. Airport excise taxes and customs duties receipts also grew, reflecting rebounds in travel and trade, a Treasury official said.

For the first five months of fiscal 2022, the federal budget deficit was $476 billion, down 55% from the year-earlier gap of $1.047 trillion, which was also a record for the period. Fiscal year-to-date receipts were up 26% to $1.807 trillion, while outlays fell 8% to $2.282 trillion.