On Thursday, we first discussed that in its latest monthly budget report for the month of June, the US Treasury reported a massive outlier that has largely been ignored by the general press: in June total US government spending hit $429 billion, the biggest one-month outlay on record, and 33% higher than the $323 billion spent a year ago.
As explained, the main reason for the outlier print was that outlays increased by roughly $60 billion in “other” items relative to baseline because the Treasury revised up its estimates of the subsidy cost of student loans, and to a lesser extent housing, it guarantees. And, as we further noted, based on the CBO revisions, “it appears that the deficit for the fiscal year, which has three months left, will be in the $650 billion to $700 billion range, if not even higher, mostly due to the surge in “subsidy costs of housing and student loans” guaranteed by the Treasury.”
Continue reading “White House Reveals Budget Deficit Will Be $250 Billion Greater Due To “Mistake””
