U.S. Deficit Grows in July on Higher Medicare, Veterans Payments

The U.S. budget deficit jumped 58 percent in July from a year earlier on higher spending, as August payments for veterans, retirees and health-care beneficiaries were accelerated.

Outlays exceeded revenue by $149.2 billion in July, compared with $94.6 billion shortfall in the same month a year earlier, Treasury Department figures released Wednesday showed. Because Aug. 1 fell on a weekend, Social Security and other payments due that day went out earlier, the department said.

The deficit for the first 10 months of the fiscal year widened to $465.5 billion from $460.5 billion in the same period a year ago.

Still, the Congressional Budget Office, which estimated a gap of $149 billion in July, said on Aug. 7 the U.S. is on track to narrow the full-year deficit to $425 billion this year, 13 percent less than the agency forecast in March.

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