(Bloomberg) -- The US federal government's budget deficit hit $1.16 trillion for the first eight months of the fiscal year, a 191% increase from a year ago.
The deficit for the month of May was $240 billion, according to data released Monday by the Treasury Department. That's more than double the deficit in May 2022. Year-on-year comparisons are adjusted to account for calendar differences.
Increasing interest costs remained the biggest driver of higher outlays in the fiscal year so far. Those expenses dropped, however, in May compared with a year ago, due to lower interest payments on inflation-protected Treasury securities.
Higher Medicare and Medicaid expenses, and federal depositor insurance costs related to the failure of a small number of regional banks this spring also contributed to higher outlays.
On the receipts side, non-withheld individual taxes — which include capital-gains levies — dropped by $74 billion in May compared to a year ago, and by $260 billion in the fiscal year to date.
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