WASHINGTON (AP) – The U.S. budget deficit rose to $88.4 billion in May from $53 billion a year earlier, as government spending in areas such as Medicaid and defense rose at a faster pace than revenue.
The Treasury Department says government receipts from individual and corporate taxes rose 7 percent last month from May 2016 to $240 billion. Meanwhile, spending leapt 19 percent to $329 billion.
Tax revenue is rising, but at a slower pace than in previous years and by less than the Congressional Budget Office has forecast. That partly reflects slower growth in the economy and hiring. With the unemployment rate low, fewer workers are available to take open jobs.
The deficit has increased to $433 billion in the first eight months of the budget year from $405 billion last year.