US Yearly Budget Deficit Reaches 2-Year High Despite June Surplus

The US federal budget deficit hit nearly $401 billion for the first three quarters of fiscal year 2016, the highest level in two years, according to the US Department of the Treasury’s latest monthly report.

WASHINGTON (Sputnik) — Despite running a $6 billion surplus for the month of June, the total US deficit is up 27 percent over last year, according to the Treasury report released on Wednesday.

The gap is due in part to declining revenues from corporate taxes, which have fallen 11 percent since 2015. Spending has increased 4 percent during the same period, the report noted.

The US government recorded a total of $2.469 billion in receipts for the year, compared with $2.870 billion in total outlays. The biggest expenses have been social security and defense spending, followed by healthcare.

The Congressional Budget Office predicted last week that the final deficit will be $534 billion, an increase of 22 percent from 2015.