Sept. 13 (Bloomberg) -- The U.S. budget deficit widened more than forecast in August as increased military spending outpaced tax receipts and some government payments usually made this month shifted.

The $117 billion shortfall, a record for August, compares with a $64.7 billion deficit for the same month last year, the Treasury said today in Washington. Total spending last month increased 30 percent to an all-time high for any month, while revenue gained 8.2 percent.

About $43 billion in outlays for Social Security and other programs, normally made this month, were recorded as August payments because of the Labor Day holiday, the Congressional Budget Office estimated this week.

The accelerated payments ``account for almost all the increase,'' said Michael Englund, chief economist at Action Economics LLC in Boulder, Colorado. ``The receipts numbers were still pretty strong. If there's an economic slowdown, there'll be more of a risk.''

Prospects for slower economic growth forced the Treasury on July 30 to raise its third-quarter borrowing estimate by 70 percent to $73 billion. President George W. Bush, running wars in Iraq and Afghanistan with a monthly tab of about $12 billion, is relying on the economy to bolster tax revenue and balance the budget by 2012.

Economists expected a budget deficit of $85 billion for July, the median of 37 estimates in a Bloomberg News survey. The CBO on Sept. 10 forecast a $115 billion August deficit.

War Spending

Through 11 months of the government's 2007 fiscal year, which ends Sept. 30, the budget deficit totaled $274.4 billion, less than the $304.4 billion shortfall through August 2006.

The CBO last month projected a 2007 deficit of $158 billion, the lowest in five years.

Revenue rose to $166.5 billion in August, compared with $153.9 billion the same month a year ago, according to today's Treasury report. Spending increased to $283.5 billion from $218.6 billion in August last year.

Military spending so far this fiscal year totaled $485.9 billion, up from $454.3 billion a year earlier, the Treasury report said.

To contact the reporter on this story: John Brinsley in Washington at jbrinsley@bloomberg.net

Last Updated: September 13, 2007 14:53 EDT