Receipts in July 2007 were about $10.5 billion (or 7 percent) higher than they were in July 2006, CBO estimates. Higher withholding for individual income and payroll taxes explains the gains, with an increase of almost $11 billion (or 8 percent). Net corporate receipts for the small number of companies that make income tax payments in July were lower by about $1 billion (or 10 percent). Outlays were $15 billion (or 8 percent) greater this July than they were last July, CBO estimates. Defense spending accounted for the strongest growth, up by about $6 billion (or 14 percent), largely in the areas of operations, maintenance, and procurement. Medicare outlays grew by $4 billion (or 13 percent) after adjusting for timing shifts, while spending for Social Security and net interest on the public debt were up by $3 billion (or 6 percent) and $2 billion (or 8 percent) respectively. The CBO also reports that through the 10 months in FY 2007, the federal budget deficit was $158 billion. Compared to last year, revenues are rising more slowly - but up by 7 percent, and outlays are up 3 percent. Monthly Budget Review, August 6, 2007