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Economy in Brief

U.S. Budget Deficit Improves This Fiscal Year
by Tom Moeller   June 13, 2011

The U.S. Government's budget deficit so far this fiscal year totaled $927.4B, according to figures released late-Friday by the U.S. Treasury and the Office of Management and Budget. The monthly deficit in May deepened slightly m/m to a less-than-expected $57.6B, but that was more than one-half shallower that last May. As a percent of GDP the deficit fell to 6.2%.

So far this fiscal year, net-receipts have risen 10.3% versus FY'10. The gain was powered by a 28.5% rise in individual income tax payments due to higher employment and longer hours worked. Corporate tax payments also rose 5.0%, reduced from 38.5% last year due to a lesser gain in corporate profits. Social insurance taxes fell 5.2% due to this year's tax cut.

Reported outlays increased 5.7% led by a 13.6% jump in interest outlays. Medicare outlays rose a steady 3.9% and social security outlays also were steady with a 3.5% rise. Growth in health spending, however, decelerated to 4.7%. Defense outlays also rose a lessened 1.5%.

Haver's basic data on Federal Government outlay and receipts and summary presentations of the Budget from both OMB and CBO are contained in USECON. Considerable detail is given in the separate GOVFIN database.

Sustained Budget Deficits: Longer-Run U.S. Economic Performance and the Risk of Financial and Fiscal Disarray from the Brookings Institute can be found here.

US Government Finance FY'11 YTD FY 2010 FY 2009 FY 2008
Budget Balance $-927.4 $-1,294.1B $-1,417.1B $-454.8B
  As a percent of GDP 6.2 8.8 10.0 3.2
Net Revenues (Y/Y % Change) 10.3 2.7 -16.6 -1.7
  Individual Income Taxes 28.5 -1.8 -20.1 -1.5
  Corporate Income Taxes 5.0 38.5 -54.6 -17.8
  Social Insurance Taxes -5.2 -2.9 -1.0 3.5
Net Outlays (Y/Y % Change) 5.7 -1.8 18.2 9.1
  Nat'l Defense 1.5 5.0 7.6 11.8
  Health 4.7 10.4 19.1 5.4
  Medicare 3.9 5.0 10.1 4.1
  Income Security -3.2 16.9 24.9 16.8
  Social Security 3.5 3.5 10.7 5.3
  Interest 13.6 3.3 -24.5 6.3
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