$5,630,859,000,000: Federal Spending Has Already Set Annual Record; Deficit at Record $2,807,295,000,000

By Terence P. Jeffrey | August 12, 2020 | 5:06pm EDT
A meeting in the Oval Office on Sept. 6, 2017. (Photo by Alex Wong/Getty Images)
A meeting in the Oval Office on Sept. 6, 2017. (Photo by Alex Wong/Getty Images)

(CNSNews.com) - The federal government set records for the amount of money it spent and the size of the deficit it ran up in the first ten months of fiscal 2020 (October through July), according to data released today in the Monthly Treasury Statement.

In fact, the $5,630,859,000,000 the federal government spent in the first ten months of this fiscal year is more than the government has ever spent in any previous full fiscal year.

Before this year, the record for federal spending happened in fiscal 2019, when the Treasury spent $4,487,143,040,000 in constant July 2020 dollars.

From October through July of this fiscal year, while the government was spending that record of $5,630,859,000,000, it collected $2,823,564,000,000 in taxes. As a result, it ran a deficit of $2,807,295,000,000.

Before this year the most the federal government had ever spent in the first ten months of a fiscal year was in fiscal 2019, when it spent $3,763,765,410,000 in constant July 2020 dollars.

While the total federal spending this year has already set an annual record, total federal tax collections have been declining. In October through July of fiscal 2019, the Treasury collected $2,888,405,930,000 in total taxes (in constant July 2020 dollars). In October through July of fiscal 2020, the Treasury collected $2,823,564,000,000 in total taxes.

Prior to running a record deficit of $2,807,295,000,000 in the first ten months of this fiscal year, the largest deficit the federal government ever ran in the first ten months of a fiscal year was in fiscal 2009, when it ran a deficit of $1,524,349,020,000 in constant July 2020 dollars.

In October through July, the Department of Health and Human Services led all federal agency in spending. It spent $1,005,897,000,000 during the period.

The Social Security Administration was second. It spent $915,775,000,000.

The Department of Defense spent $540,442,000,000.

During the first ten months of this fiscal year, the Treasury also spent $309,415,000,000 in net interest on the federal debt.

(The numbers in this story were adjusted into constant July 2020 dollars using the Bureau of Labor Statistics Inflation calculator.)

The business and economic reporting of CNSNews.com is funded in part with a gift made in memory of Dr. Keith C. Wold.

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