June 2017 Cash Deficit: $23B

The US Cash Deficit for June 2017 came in at $23B compared to last June’s $19B surplus primarily due to timing. With July 1 on a Saturday, about $40B of cost that was due in early July was paid 6/30, creating an increase in June outlays that will be offset by a decrease in July.

If you put it adjust for that, 2016 and 2017 are pretty much running equal as 2017’s ~+3% growth in outlays has been offset by a ~+3.5% increase in revenue.

So far, no evidence of any real change being terribly likely in 2017… no tax cuts, no infrastructure spending, no huge economic growth…just more of the same, not that I am complaining :)…it makes the forecasting a whole lot easier!! The second half of the year generally has much higher deficits than the first, so unless we start seeing some major changes, we are looking at another ~$700B deficit.