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12.08.202618:16:30UTC+00US Budget Deficit Widens in July

The US federal government recorded a budget deficit of $432 billion in July 2026, up from a $291 billion shortfall in the same month a year earlier and surpassing expectations for a $346 billion gap.

Total government outlays rose to $766 billion from $630 billion in July 2025, driven primarily by Medicare expenditures of $174 billion. Social Security payments amounted to $141 billion, while net interest costs reached $104 billion and national defense spending totaled $91 billion.

On the revenue side, government receipts slipped to $334 billion from $338 billion a year earlier. Individual income taxes contributed $173 billion, and social insurance and retirement receipts came to $139 billion.

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