In February, the US. government reported a $262 billion budget deficit, up 21% over the same month the previous year. This increase was primarily the result of greater tax refunds sent out as the Internal Revenue Service worked through a sizable backlog of unprocessed returns.
According to the Treasury Department, the February shortfall was smaller than the $217 billion budget imbalance in February 2022.
Outlays increased $18 billion, or 4%, to $525 billion, while receipts for the month dropped $28 billion, or 10%, to $262 billion.
Individual withheld tax receipts increased by $10 billion, or 4%, in February, according to the Treasury, but individual tax refunds, which lower receipts, increased by $31 billion, or 153%, to a total of $52 billion.