U.S. January budget deficit hits record $163 billion as new aid checks sent out

The U.S. government posted a budget deficit of $163 billion in January, a record high for the month and a $130 billion jump from the deficit in the same month last year, as a new round of direct payments to individuals were distributed, the Treasury said on Wednesday.

Receipts for January rose 3% from the year-earlier period to $385 billion, while outlays grew 35% to $547 billion. Both receipts and outlays were record highs for January. For the first four months of the 2021 fiscal year, the deficit rose 89% to $736 billion, with receipts rising 1% to $1.19 trillion and outlays increasing 23% to $1.92 trillion. The deficit, receipts and outlays were all year-to-date record highs.

The January deficit would have been considerably larger if not for some $44 billion in benefits being paid in December because the New Year’s Day holiday came at the start of a weekend.