Deficit of $40.5 Billion in May Is Biggest Red Ink Total Ever
The federal government suffered a $40.5-billion budget deficit in May, the biggest monthly red ink total on record, the Treasury Department reported Thursday.
The deficit last month was 19.2% higher than the previous monthly record, a $33.9-billion imbalance in May, 1984.
For the first eight months of the 1985 fiscal year, the deficit totals $156.2 billion, 11.1% higher than at the same time a year earlier.
The Reagan Administration is forecasting that the deficit for all of 1985 will hit a record $203.2 billion, 16% higher than last year’s $175.3-billion deficit.
For May, government revenues totaled $39.8 billion, while spending was $80.2 billion.
For the fiscal year through May, revenues totaled $474.6 billion, 12.5% above the pace a year before. Government outlays totaled $630.8 billion, 12.2% above the year-earlier level.
Interest on the national debt came to $13.9 billion last month and $114.4 billion for the current fiscal year, 18.4% above the pace set in fiscal 1984.