The federal budget deficit was $514 billion in the first nine months of fiscal year 2022, CBO estimates. That amount is less than one-quarter of the $2.2 trillion shortfall recorded during the same period in 2021.
The federal budget deficit was $514 billion in the first nine months of fiscal year 2022 (that is, from October 2021 through June 2022), the Congressional Budget Office estimates. That amount is less than one-quarter of the $2.2 trillion shortfall recorded during the same period in 2021. Revenues were $779 billion (or 25 percent) higher and outlays were $945 billion (or 18 percent) lower than during the same period a year ago.
The deficit at this point last year was much larger because of spending in response to the coronavirus pandemic—mostly for the recovery rebates (also known as economic impact payments), unemployment compensation, pandemic relief through the Small Business Administration (SBA), and the Coronavirus Relief Fund—and because revenues were lower.
In its May report on the budget outlook, CBO projected a deficit of $1.0 trillion for 2022. Given the results through June, however, CBO expects that the deficit this year will be smaller than that.
