US: $ 119 billion budget surplus in January

For the first time in more than two years, the US budget showed a surplus in January, amid a significant increase in tax revenues and a sharp decline in expenditures related to dealing with the effects of the pandemic.

In particular, the budget surplus in the first month of 2022 amounted to 119 billion dollars, according to data announced by the Ministry of Finance on Thursday, against a record deficit of 163 billion dollars in the corresponding period of 2021, as a result of direct benefits paid by the US government to relieve households of the effects of the pandemic, following the program it introduced in December 2020.

It is noted that the last time the US budget showed a surplus was in September 2019, when it showed a surplus of $ 83 billion, while it is the second highest after the $ 160 billion it showed in April 2019. It is noted that April and September is traditionally the month with the highest tax collection.

More specifically, revenues in January rose 21% to $ 465 billion, boosted by a 21% rise in withholding income and payroll taxes, indicating increased employment and economic recovery.

At the same time, spending fell 37% to $ 346 billion, partly due to the fact that it does not include the $ 142 billion in January 2021 that the government sent to household “checks” in support. aimed at mitigating the effects of the pandemic.

The budget surplus in January was also boosted by $ 70 billion in revenue from a tender for a range of wireless services, according to a Treasury Department official.

For the first four months of fiscal year 2022, which began on October 1, the Treasury Department announced a budget deficit of $ 259 billion, down 65% from a deficit of $ 736 billion a year earlier. During the same period, receipts increased by 28% to 1.52 trillion. while spending fell 8% to $ 1.78 trillion. dollars.