MercoPress. South Atlantic News Agency

US budget finances improving as labor market recovers and tax payments advanced two months

In June revenue increased 87% equivalent to 449 billion dollars, partly as a consequence of advancing the deadline for presenting income tax filings to May 17.

The United States government recorded a budget deficit of 174 billion dollars in June, which is approximately a fifth of the 864 billion dollars the same month a year ago. Recovery of the labor and jobs markets, together with an advanced deadline to pay taxes this year helped to achieve the positive tendency.

According to the Treasury Department in June, revenue increased 87% equivalent to 449 billion dollars, partly as a consequence of advancing the deadline for presenting income tax filings to the Internal Revenue Service, to May 17. Last year because of the pandemic the date was delayed until July 15.

The Treasury also reported that retentions on salaries grew 33% to some 240 billion dollars in June compared to a year ago while corporation taxes in June jumped to 79 billion dollars from just 11 billion dollars in 2020. Likewise outlays dropped in June 44% compared to a year ago, to 623 billion dollars, because of the huge impact for the deficit in 2020 of the implementation of a subsides program for staff and companies during the pandemic.

Consequently, the fall in expenses has helped to reduce the fiscal year budget deficit in its first nine months to 2,238 billion dollars from 2,744 billion dollars, pointed out by the US Treasury. Revenue so far this year has increased 35% over a year ago and reached 3.056 billion dollars, while outlays grew 6% to 5.294 billion dollars.