The numbers: The U.S. federal government had a budget deficit of $262 billion in February, $46 billion more than the same month a year ago.
Key details: The government spent $525 billion in the month, 4% more than in February 2022, while it took in $262 billion in receipts, a 10% fall caused by a drop in items including Federal Reserve earnings and customs duties.
Big picture: For the first five months of the fiscal year, the budget deficit totaled $723 billion, compared to $476 billion for the year-ago period. For the year to date the government has spent more on Social Security, education and other programs. Individual tax collection has risen modestly.
The latest monthly numbers arrived a day after President Joe Biden unveiled his budget proposal for fiscal 2024. The president is aiming to cut deficits by nearly $3 trillion over the next 10 years, and his proposals are likely to factor into his discussions with House Republicans over raising the U.S. debt limit.
See: Biden targets crypto, real estate and oil industries, as he unveils his budget
Congressional Republicans have blasted Biden’s budget for what they said would be a burden on families through taxes or higher costs, and challenged the president to cut spending.
Market reaction: Bond yields
TMUBMUSD10Y,
were tumbling Friday and U.S. stocks
SPX,
extended weekly losses after a February jobs report showed employers adding a greater-than-expected number of jobs, and investors were jittery over the closure of Silicon Valley Bank
SIVB,
