Treasury Reports $63 Billion Deficit for July, Pushing FY 2020 Total to $2.8 Trillion
For Immediate Release
The United States budget deficit for the month of July was $63 billion, according to the Monthly Treasury Statement released today. The deficit for the first ten months of fiscal year 2020 now stands at $2.8 trillion. Currently, the debt held by the public stands at $20.6 trillion and the total debt is $26.5 trillion. Below is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
We have borrowed $2.8 trillion this year so far – triple what we borrowed last year. While this massive borrowing is exactly what we need to do to help the economy, it will need to be followed by measures to bring the debt back down once the economy has recovered.
Key highlights from today’s report:
- The $2.8 trillion deficit thus far in FY 2020 is $1.9 trillion more than the same ten month period for 2019.
- Total spending in July 2020 was $624 billion, a 68 percent increase from July 2019, mostly due to legislation passed in response to the COVID-19 pandemic and economic downturn.
- Unemployment compensation payments totaled $110 billion, versus only $3 billion in July 2019. Much of the increase is due to the $600 per week increase in weekly benefits under the CARES Act, which expired at the end of July. CRFB estimates that the $600 supplement cost $200 billion over the past four months, nearly $25 billion more than CBO’s original score.
- Small Business Administration outlays for July 2020 were $26 billion, versus $103 million for July 2019, as the agency continues to provide aid to small businesses through the Paycheck Protection Program.
- This month’s $63 billion deficit is lower compared to last July because of the delay of Tax Day. Revenues that would have normally been paid in April and June were instead paid in July. The timing shift makes this month's deficit look lower and previous months higher than they would if Tax Day weren’t delayed.
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