A Congressional Budget Office report says the federal budget deficit for the first 10 months of fiscal year 2016 reached $514 billion, about $49 billion higher than the agency’s shortfall estimates for the same period in FY 2015.
CBO said in the report published Friday it predicts the total annual budget deficit for FY 2016 to hit $590 billion driven by lower-than-expected revenues.
Total receipts for FY 2016’s first 10 months reached $2.7 trillion, up $7 billion from the prior-year period, the report said.
Total outlays climbed 2 percent in the 10-month period to $55 billion due to spending increases in Social Security, Medicaid and Medicare programs, according to the report.
The agency also noted the federal government incurred $113 billion in deficit in July, about $36 billion less than CBO’s July 2015 deficit estimates.
The Treasury Department posted $6 billion in actual surplus in June, down $4 billion from CBO’s estimates for the same month in the previous fiscal year, the report added.