U.S. Reports August Deficit of $23 Billion

The federal budget posted a $23.08-billion deficit in August, up almost 6% from a year ago, the Treasury Department reported.

With only one month to go in the fiscal year, the deficit totaled $165.3 billion, the department announced Thursday.

That is higher than last year’s total deficit, but the government forecasts that a surplus of about $13 billion in September will narrow the gap.

The goverment forecasts a budget deficit for all of fiscal 1988 of $152.35 billion, up 1.9% from the 1987 deficit of $149.51 billion. This would be far better than many economists had been expecting when the year began. At that time, they foresaw a deficit of $160 billion or worse.