U.S. DEFICIT IS $48.9 BILLION *EXPANDED* WASHINGTON (UPI) - The federal government posted a $48.9billion deficit in October, the first month of the 1993 spendingyear, the Treasury Department said Monday. The deficit was 34 percent higher than the deficit of $36.6billion for October a year ago. So-called on-budget receipts for the first month of the newbudget year were estimated at $55.1 billion, $2.1 billion lowerthan October a year ago. Outlays were estimated at $125.7billion for the first month of the new fiscal year, up $10.9billion from a year earlier. The administration projects a $341 billion deficit for thefiscal year that began Oct. 1 and ends Sept. 30, 1993. The Treasury Department dipped into cash reserves to helpfinance the deficit in October, rather than turn to the publicto borrow all of the cash necessary. The Treasury reduced itsreserves by $1.5 billion in the month. By holding down its profile in the debt markets, the U.S.government was less of a competitor for business and consumerborrowers in the month. The strategy is useful only for theshort-term because of the magnitude of the government's needs.By staying out of the market as much as possible, however, thefederal government did not put upward pressure on interest ratesin the weeks immediately prior to the presidential election. So-called off-budget receipts from government investments,sales of assets and other miscellaneous activities were almost$1 billion higher than October a year ago.
