The US Treasury said the first month of fiscal 2027 (Oct 2026) posted a $404bn
deficit, up 42% YoY. Outlays rose 12% YoY to $773bn, driven by higher military,
healthcare and net interest spending. Receipts fell 9% to $369bn; tariff revenue
dropped about 39% to $19.2bn and larger tariff and corporate tax refunds also
weighed on receipts. Treasury projects the fiscal-year deficit will widen
modestly to roughly $2.2trn, versus $1.99trn a year earlier (about 6% of GDP).
