Deficit Decline

While last year’s budget deficit (FY21) was $2.8 trillion, the preliminary estimate of the FY22 deficit, which ended 9/30/22, is $1.4 trillion, a decline of 50%. This total includes $426 billion for student-loan debt relief but excludes income-driven repayment relief, as those plans have not been finalized. Total receipts were $4.9 trillion, up 21% Y-o-Y, spending was $6.3 trillion, down 8% Y-o-Y. Pre-Covid, in FY2019, the deficit was $984 billion.