Fiscal Spending Up 18.7% MoM and 4.1% YoY


by Peter Schiff, Schiff Gold:

The Federal Budget Deficit for September 2021 was $61.5B which was down from the $171B in August. Even though the deficit fell 64% MoM, it was driven primarily by receipts. Spending was up 18.7% MoM but Receipts were up 71.2% driven by a surge in Corporate and Individual taxes.

September marks the end of fiscal year 2021 for the Government. The Fed ran the second-largest budget deficit in US history. Similar to the MoM picture, this was not due to a fall in spending. Spending increased 4.1% YoY to a whopping $6.8T. This was 53% higher than the $4.4T for fiscal year 2019. Receipts were up 18.3% YoY, rising from $3.4T to $4T. This led to a net fall in the deficit from $3.1T to $2.8T.


The charts below show the monthly amounts.

Figure: 1 Monthly Federal Budget

To better understand what is driving the large outlays and receipts, the next two charts break down both sides of the budget into different categories. September saw the largest corporate tax amount ($86.7B) for at least the past 18 months.

Figure: 2 Monthly Receipts

The high spending is very concerning as the chart below shows. “Treasury – Other” represents stimulus checks, so it makes sense this has fallen in the most recent month. When this variable is removed, the month of September stands larger than most other months going back over the last year.

Figure: 3 Monthly Outlays

The table below goes deeper into the numbers of each category. The key takeaways from the charts and table:


  • As highlighted above, Outlays have increased but Receipts increased faster providing relief. This won’t always be the case, so it will be important to see if spending comes down in the coming months.
    • Biden still has a massive spending bill being pushed through congress.


  • Health and Human Services (HHS) has jumped up 45% MoM and exceeded the 12-month average. This is concerning as spending should be falling at HHS as COVID has come under more control
  • Education spiked 632% as the school year got underway
  • Labor, SBA, and Treasury Other have all fallen dramatically as stimulus money has run out


  • Corporate Taxes are up 180% compared to the 12-month average
  • Individual taxes increased 73% MoM but are only up 26% when compared to the monthly average

Figure: 4 US Budget Detail

The current surge in tax revenue could be attributed to many things. Taxes on stimulus spending, fiscal year-end related items, or tax payments being made in advance of the October tax deadline (in normal years, you can defer taxes to October if you don’t have the necessary information to file in April).

The chart below looks at expenditures on a TTM basis back to 2016. As can be seen, spending was increasing steadily before the pandemic. Considering the current administration and congress, this trend is not likely to slow. Additionally, politicians are using the last 18 months as evidence that they can spend massive amounts without immediate repercussions. With the Fed monetizing almost all the debt, there is nothing to slow down the increased spending. Eventually, the massive deficit will catch up to the economy and budget, and kicking the can will become impossible.

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