United States federal budget data showed a budget deficit of $38.7 billion in January 2023 compared to a surplus of $118.6 billion in the same month of 2022.
The data said the deficit came as a result of lower revenues and higher government spending, but the deficit was smaller than expected at $40.5 billion.
Federal revenue last month was about $447.2 billion, down 4% from last year.
Spending increased to $486 billion in January last year from $346.3 billion in the same month of 2022.
For his part, US President Joe Biden plans to make deficit reduction the focus of his 2024 budget and seeks to get Republicans to focus on government revenues, not just spending.
The White House is looking to gain a tactical edge in the inevitable confrontation with Congressional Republicans over the debt ceiling and wants to test Republicans’ commitment to reducing annual deficits over the next decade, according to the Axios website.
Officials plan to rig various proposed tax increases for corporations and the rich, including higher tax rates for the wealthy, to close the gap between what the government gets and what it spends.
Biden’s budget will require about $238 billion in deficit reduction under the Inflation Control Act. It’s unclear if he’ll calculate the potential $400 billion cost for his student loan write-off program, which is pending in the courts.
