July’s Budget Deficit Hits $25.93 Billion

The United States posted a $25.93-billion budget deficit in July following a shortfall of $18.24 billion in July, 1989, the Treasury Department announced today.

Private economists had predicted a shortfall of $27 billion for last month, following federal budget deficits of $11.23 billion in June and $42.56 billion in May.

“Outlays have been a lot higher this year,” mainly because of the amount of cash being pumped into the ailing savings and loan industry, said Michael Niemira, an economist at Mitsubishi Bank in New York.

Niemira also said that government revenues were off from last year because of the slower pace of growth of the domestic economy, which he describes as being in a “growth recession.”

For the fiscal year to date, the United States is running a budget shortfall of $189.08 billion, and it is expected to finish the 12-month period on Sept. 30 with a deficit of $220.08 billion.

In its monthly budget statement, the Treasury Department said the previous fiscal year to date deficit stood at $123.66 billion in 1989, and the government expects to chalk up a total shortfall of $176.33 billion in fiscal 1991.

The Treasury Department also said that the government spent $3.18 billion on the bailout of the nation’s failed savings and loans for a total of nearly $35.20 billion for the fiscal year to date.

In fiscal 1991, the United States expects to spend at least $57.1 billion on the crippled thrift industry, the department said.

Receipts totaled $72.36 billion in July while total outlays stood at $98.29 billion last month. For the current fiscal year to date, receipts totaled $850.10 billion while outlays totaled $1.04 trillion, of which $228.62 billion--or about 22%--went toward interest on the public debt.

In July, the United States spent:

--$18.44 billion on interest on government securities.

--$22 billion on the military.

--$19.65 billion on Social Security.

--$17.35 billion on health and human services.

--$1.27 billion on veterans services and benefits.

--$1.10 billion on the National Aeronautics and Space Administration, NASA.