Economics

US Budget Deficit Shrinks $1.6 Trillion on Record Tax Surge

  • Jump in revenue to Treasury propelled by individual taxes
  • Spending slowdown has also contributed to narrower deficit

The US.Treasury building in Washington, D.C.

Photographer: Samuel Corum/Bloomberg
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The US federal government’s budget deficit has shrunk by some $1.57 trillion so far this fiscal year, driven by record receipts from a strong economy and a slowdown in spending as pandemic-era programs fade.

The deficit dropped to $360 billion over the seven months from October through April 2022, according to Treasury Department data released Wednesday.