The U.S. posted a $42.94 billion federal budget deficit for July, down from a $112.82 billion shortfall from a year ago and June's $90.23 billion budget gap, the Department of Treasury reported.

Total outlays for July amounted to $274.98 billion, while total receipts reached $232.04 billion, including $113 billion from individual income taxes and $9 billion from corporate income taxes.

The Treasury said outlays for military pay, veterans benefits and payments related to healthcare and social welfare went out in June because July 1, the usual payment date, fell on a non-business day.

The cumulative receipts and outlays through fiscal year 2017 now stand at $2.740 trillion and $3.306 trillion, respectively, for a deficit of $566.02 billion, up from $523.08 billion in June.