US federal budget deficit dropped by 52 percent in August

According to data released by the US Department of the Treasury, the federal government's budget deficit decreased by 52 percent in August compared to the same period last year.

August Budget Balance

According to the budget balance report published by the US Department of the Treasury, the federal government posted a budget deficit of $167 billion in August. This figure represents a significant decline compared to the $345 billion deficit recorded in the same month of last year.

While it was noteworthy that the budget deficit decreased by 52 percent annually during this period, market expectations were for the deficit to be around the $221 billion level.

Revenue and Expenditure Items

In August, federal government revenues increased by 5 percent compared to the same period last year, rising to $360 billion.

During the same period, government expenditures showed a 24 percent decrease, falling to $527 billion and playing an effective role in the narrowing of the budget deficit.

11-Month Total Outlook

In the first 11-month period of the 2026 fiscal year, which began on October 1, 2025, and will end on September 30, the total budget deficit reached $1.97 trillion. The federal government's total budget deficit in the same period of the 2025 fiscal year had also stood at the $1.97 trillion level.

Over the past 11 months of the fiscal year, government revenues rose by 3 percent to $4.85 trillion, while expenditures increased by 2 percent to $6.81 trillion.