Tag Archives: budget deficit

Treasury Declares Lowest Deficit Since 2008

Economy, ,
Treasury Secretary Jacob Lew
Treasury Secretary Jacob Lew

Increased revenue from taxes and reduced spending from budget cuts combined to give America’s lowest budget deficit figures since 2008, according to Treasury Department data published on Wednesday.

During the last month of the fiscal year, which goes from October to September, the government brought in $75.1 billion more than what it spent. This leaves the year’s deficit at $680 billion, down from $1.09 trillion in 2012.

For every dollar that the government spent last year it collected 80 cents. The downturn for the government was caused by the 2007-2009 economic crises, which lowered government revenues substantially while increasing spending due to large unemployment benefit payouts.

About 80 percent of the deficit’s reduction came from higher taxes collected, the Treasury said in a statement. Treasury Secretary Jack Lew said that the budget gap fell at its quickest pace since WW II during the past four years.

“Congress must build on this progress by crafting a pro-jobs and pro-growth budget agreement that strengthens the economy while maintaining fiscal discipline,” Lew said in the statement.

Budget Deficit Doing Better

Economy, ,

The most recent projections for the budget deficit coming out of the Congressional Budget Office are showing a distinct and significant improvement in the country’s finances. Higher than expected tax revenues will help to reduce the deficit to only $642 billion this year, which is 4 percent of GDP. That amount turns out to be the lowest aggregate deficit in 15 years. It is also less than half the size of 2009’s deficit which was 10.1 percent of GDP.

Even more startling is the speed with which the improvement is advancing. The CBO has sliced $200 billion from its deficit projection for this year, just since February. The total reduction over the next ten years has been estimated to be $618 billion. The new figures have come to light in just the past three months.

The dramatic change is almost entirely due to higher than anticipated tax revenues. Individual income tax receipts climbed by 5 percent, or $69 billion. Corporate tax income are most likely going to be about 16 percent higher for a total of $40 billion more money for the government. Fannie Mae, the government mortgage bank, also supplied an additional $95 billion to the Treasury.