U.S. Posts $129 Billion January Deficit on Calendar Shifts, Higher Outlays
Wednesday, Feb 12, 2025 2:24 pm ET
5min read 
The U.S. government posted a $129 billion budget deficit in January 2025, primarily driven by calendar shifts in government payments and higher outlays. This significant deficit highlights the importance of understanding the timing of outlays and revenues in assessing the fiscal health of the nation.
The primary drivers of the increased outlays in January 2025 were:
1. Shift in Payment Timing: The U.S. government made certain payments that were originally scheduled for February 1, 2025, in January instead. This shift in timing increased outlays in January but would have decreased them in February if not for the calendar adjustment. This is evident in the CBO's statement: "Outlays in January 2025 rose, on net, because payments due on February 1, 2025, a Saturday, were made in January" (CBO, February 11, 2025).
2. Postponed Tax Deadlines: Some tax deadlines from 2023 were postponed to 2024, which boosted receipts in 2024 but increased outlays in 2025. This is mentioned in the CBO report: "Part of the deficit increase in 2025 also arises from the postponement of some tax deadlines from 2023 to 2024" (CBO, February 11, 2025).
These factors influence the overall fiscal outlook for the year by increasing the federal budget deficit. The CBO estimates that the deficit for fiscal year 2025 is $1.9 trillion, which is $306 billion more than the deficit recorded during the same period last fiscal year. This increase in the deficit highlights the importance of understanding the timing of government outlays and revenues in assessing the fiscal health of the nation.
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Treasury Stock(USD)2024.12.31  | Debt-to-Equity Ratio2024.12.31  | Market Cap(USD)2025.02.10 | Market Cap2025.02.12 | ROE(Average)%2024.12.31 |
|---|---|---|---|---|
| 238.82B | 0.15 | 488.93B | 469.12B | 14.38 |
| 71.15B | 0.38 | 135.05B | 126.11B | 16.21 |
| 42.25B | 0.29 | 54.28B | 54.49B | 18.94 |
| 40.15B | 0.33 | 156.08B | 146.60B | 40.61 |
| 37.58B | 0.40 | 187.18B | 200.11B | 36.31 |
| 27.09B | 0.48 | 90.82B | 75.72B | 20.00 |
| 26.23B | 0.29 | 59.16B | 56.95B | 22.64 |
| 22.45B | 0.40 | 72.09B | 68.04B | 17.44 |
| 18.75B | 0.33 | 169.11B | 161.30B | 16.60 |
| 15.17B | 0.07 | 74.51B | 71.78B | 15.95 |
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| XOMExxon Mobil |
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| TRVThe Travelers Companies |
| AMATApplied Materials |
| ADBEAdobe |
| PYPLPaypal Holdings |
| AFLAflac |
| GDGeneral Dynamics |
| INTUIntuit |
| REGNRegeneron |
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Changes in the timing of outlays and revenues can significantly impact the accuracy of budget projections and the assessment of the federal government's fiscal health. This is because these shifts can distort the actual budget deficit or surplus for a given fiscal year, making it difficult to compare and analyze trends over time. To address this issue, analysts and policymakers should consider the effects of these shifts when evaluating budget trends and making decisions about fiscal policy.
In conclusion, the U.S. government's $129 billion January deficit serves as a reminder of the importance of understanding the timing of outlays and revenues in assessing the fiscal health of the nation. As the U.S. government continues to grapple with a growing national debt, it is essential to consider the timing of outlays and revenues when evaluating the fiscal health of the nation. By doing so, investors can make more informed decisions about the future of the U.S. economy and the potential impact on their portfolios.
