U.S. March budget deficit falls sharply as revenues surge, COVID outlays drop

div classBodysc17zpet90 cdBBJodivpReuters – The U.S. government posted a 193 billion budget deficit in March, less than a third of the 660 billion gap a year earlier, the Treasury Department said on Tuesday, as COVID19 relief outlays fell sharply and tax receipts surged to record levels. p

pThe Treasury said March outlays were 508 billion, down 45 from March 2021, while receipts jumped 18 to 315 billion, a new March record, reflecting a strong U.S. economic recovery.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe March 2021 deficit of 660 billion had been a record for the month, driven by direct payments of 1,400 to millions of Americans under last years 1.9 trillion American Rescue Plan Act.p

pFor the first six months of the 2022 fiscal year that started on Oct. 1, the Treasury reported a deficit of 668 billion, a 61 drop from the yearago period.p

pYeartodate outlays fell 18 from the first half of fiscal 2021 to 2.79 trillion, while receipts grew 25 to 2.122 trillion, a new firsthalf record.p

pThe March receipts were driven largely by increases in individual withheld and nonwithheld income taxes, reflecting lower unemployment levels compared to a year ago, Treasury official said.p

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pp Reporting by David Lawder Editing by Andrea Riccip

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