WASHINGTON — The federal government’s budget deficit shrank sharply in May because of a calendar quirk. But even with latest improvement, the deficit for the first eight months of this budget year is larger than last year.
The Treasury Department says the deficit last month totaled $52.5 billion, down from a deficit of $84.1 billion in May 2015. However, much of the improvement reflected nearly $40 billion in May benefits that were paid in April because May 1 fell on a Sunday.
For the first eight months of this budget year, the deficit totals $407.1 billion, an 11 percent increase over the $366.8 billion deficit recorded for the same period last year.
The Congressional Budget Office is forecasting that this year’s deficit will end up being 21.9 percent higher than last year.
