US: Budget deficit increased $208.7bn in March - Nomura

The US budget deficit increased $208.7bn in March, bringing the fiscal year to date deficit to $599.7bn, notes the research team at Nomura.

Key Quotes

“The March 2018 deficit was just over $30bn larger than the deficit posted in March 2017, largely driven by increased outlays in non-discretionary programs, according to the Congressional Budget Office (CBO). Lower receipts as a result of new withholding tables were largely offset by lower tax refunds relative to last year. Defense outlays increased somewhat less than we had expected, indicating that some of the ramp up in defense spending after the recent budget deal may have yet to take place.”