(Reuters) – The U.S. government reported a $119 billion surplus in January. This was due to strong tax receipts growth and a sharp fall in pandemic-related expenditures, according to the Treasury Department.

A January surplus of $163 billion was recorded compared with a January 2021 deficit. It is a record month for direct payments to individuals under COVID-19 legislation, which was passed in December 2020.

This month’s surplus was larger than the $83billion reported in September 2019, and more than the $160billion in April 2019. In April and September, there are usually high taxes collections.

January revenue increased by 21%, to $465 billion. It was largely due to an increase of 21% in individual withheld earnings and payroll taxes. These increases reflect higher employment levels and better earnings as a result the economic recovery.

Because January’s outlays were not inclusive of $142 billion in stimulus payments, which was sent in January 20,21, they fell 37% down to $346 billion.

According to a U.S. Treasury official, the recognition of proceeds from the auction of wireless spectrum for $70billion also helped the month’s surplus.

In the fourth quarter of 2022, the Treasury had a deficit at $259 billion. This was a 65% decrease from the $736 billion deficit the year before. While receipts for the year rose 28%, to $1.52 trillion from $1.52 trillion in 2017, outlays decreased 8% to 1.78 trillion.