(Bloomberg) --
The U.S. budget deficit expanded in November, reflecting an increase in spending tied to the timing of some federal payments.
The monthly gap increased to $208.8 billion in the month, 1.9% above the prior year's level, the Treasury Department reported on Wednesday. Spending increased 5.6%, with outlays rising for agriculture, defense, social security, and Medicaid. Receipts jumped 9.3% on increases in payroll taxes and individual income payments.
The non-partisan Congressional Budget Office estimated earlier this week that the November budget gap would have been about $50 billion smaller if not for a calendar quirk. Similar to last fiscal year, some December payments were moved up to November because Dec. 1 fell on a Sunday.
The budget under President Donald Trump has some deficit hawks concerned about its sustainability, arguing that it risks investors losing confidence in the U.S. to repay its debts over the long term. At the same time, Treasury yields remain historically low despite the rising budget deficit, which includes the impact of Trump's tax cuts package that the CBO estimates will cost $1.9 trillion over the next decade.
To contact the reporter on this story: Katia Dmitrieva in Washington at edmitrieva1@bloomberg.net
To contact the editors responsible for this story: Scott Lanman at slanman@bloomberg.net, Vince Golle, Margaret Collins
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