US budget deficit shoots up in October
The US federal government budget deficit hit $137bn (£90bn) in October, a 12 per cent increase on the same month last year, the Treasury Department said today.
Total receipts edged down one per cent to $211bn while spending was up four per cent on the year to $348bn.
The timings of certain payments were to blame for rise in borrowing, the Treasury said, adding that borrowing would have been a whopping $80bn lower otherwise.
The US government’s financial year runs from October to September, with last budget year seeing the lowest budget deficit since 2007.
The improvement has been attributed to the stronger US economy which has fed through to tax reciepts and reduced state-payouts.
The US risked default at the beginning of the month after the country's borrowing near its legal limit. However, Congress managed to pass a deal that prevented the government from having delay public sector pay and bond repayments. The Treasury Department would have exhausted the last of its borrowing capacity on 3 November, according to Treasury Secretary Jack Lew.