U.S. Markets

U.S. budget deficit reaches $90 billion for June

U.S. Treasury Secretary Steven Mnuchin discusses the Trump administration's budget plan during the Peterson Foundation's 2017 Fiscal Summit in Washington, U.S., May 23, 2017. REUTERS/Jim Bourg

WASHINGTON (Reuters) - The U.S. Treasury said on Thursday the federal government posted a $90 billion budget deficit for June versus a year-earlier surplus of $6 billion as receipts failed to keep pace with growth in outlays.

The June deficit exceeded analysts’ estimates of a $35 billion deficit.

Treasury said outlays for military pay, veterans benefits and certain other payments were accelerated into June because July 1 was on a non-business day. Without these changes, the June deficit would have been $51 billion, it said.

Receipts for June grew 3 percent to $339 billion, while outlays, including the accelerated payments, grew 33 percent to $429 billion. Outlay growth would have been 20 percent without the accelerated payments.

U.S. Treasury Secretary Steven Mnuchin has called on Congress to raise the U.S. debt limit as soon as possible to ensure that the government can meet its spending obligations.

Reporting by David Lawder; Editing by Andrea Ricci