US Budget Deficit Narrows 7 Percent in May; Tariff Revenues Drop After Refunds

The U.S. budget deficit narrowed in May from the prior year, but tariff revenues declined that month as federal refunds began being issued. Washington registered a $293 billion shortfall last month, down more than 7 percent from a year ago, according to new data the Treasury Department released on June 10. Economists had forecast a $275 billion deficit. Federal outlays fell almost 9 percent year over year, totaling about $628 billion. Social Security was the top budgetary item last month, totaling $140 billion. This was followed by net interest payments ($107 billion), Medicare ($87 billion), healthcare ($82 billion), and defense ($73 billion). Tax receipts also slipped 10 percent year-over-year to $335 billion. Social insurance and retirement contributions ($157 billion) and individual income taxes ($152 billion) were the chief revenue generators....