US budget deficit rose to $121.7 billion in October, up $31.1 billion from last year

The US Treasury Department announced that the budget deficit in October rose to $121.7 billion, up $31.1 billion from a year ago. However, the increase is mainly because of quirks in the calendar.

October, the first month in the 2015 budge year, reported a higher deficit, but the deterioration is because the government had to spend $41 billion in November benefit payments in October as the first day of November was on a Saturday.

Receipts totaled $213 billion in October, an increase of 7% and spending totaled $334.4 billion, 15.5 percent higher than a year ago.

In 2014 the budget deficit decreased to $483.3 billion *the smallest since George W. Bush’s last full year as president).

Analysts expect that the deficit will continue to improve this year, with The Congressional Budget Office projecting a $469 billion deficit for 2015.

The CBO is forecasting that deficits will begin to rise later in the decade as baby boomers retire and Social Security and Medicare costs increase.

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