(CN) — The federal budget deficit rose to $146.8 billion in May, the Treasury Department said Tuesday, a rise of 23 percent over a year ago.
The May increase followed a surplus of $214.3 billion in April, an anticipated month in the black because of the federal income tax filing deadline.
According to the Treasury Department, the deficit for the first eight months of this budget year, which began on Oct. 1, totals $532.2 billion. That’s up by $99.4 billion from the $432.9 billion imbalance run up during the same period last year.
The Congressional Budget Office has predicted that the deficit for this year will ultimately hit $804 billion — up $138 billion from last year’s deficit of $665.8 billion.
The CBO has also said annual deficits will rise above the $1 trillion mark under the impact of the 10-year tax cut passed last year, coupled with rising costs for Social Security and Medicare as more baby boomers reach retirement age.
The Treasury’s monthly budget report showed that, through the first eight months of this budget year, government revenues total $2.22 trillion, up 2.6 percent from the same period a year ago. Government outlays total $2.76 trillion, up a much larger 6 percent from the same period a year ago.
The Associated Press contributed to this report.