FX.co ★ US Budget Deficit Widens More Than Forecast in October

The US federal budget deficit widened to $404 billion in October 2026, up from $284 billion in the same month a year earlier, and came in above market expectations of a $298.6 billion shortfall. Total outlays increased to $773 billion from $689 billion. The largest spending categories were Medicare ($170 billion), Social Security ($143 billion), national defense ($103 billion), and net interest ($103 billion), followed by health ($94 billion), income security ($58 billion), and veterans' benefits ($54 billion). On the revenue side, total receipts fell to $369 billion from $404 billion, with individual income taxes ($186 billion), social insurance and retirement contributions ($131 billion), and customs duties ($19 billion) constituting the main sources of income.