Global| Aug 10 2006July U.S. Budget Deficit Better Than Expected
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. federal government ran a budget deficit of $33.2 billion in July, somewhat better than consensus expectations of $44 billion. The July shortfall brought the fiscal year 2006 ten-month total deficit to $239.7 billion compared [...]
The U.S. federal government ran a budget deficit of $33.2 billion in July, somewhat better than consensus expectations of $44 billion. The July shortfall brought the fiscal year 2006 ten-month total deficit to $239.7 billion compared with a deficit of $302.8B for the same period in FY2005. The budget deficit for the full FY2006 was estimated last month at $295.8B by the Office of Management and Budget in its Mid-Session Review.
Growth in FYTD 2006 net revenues versus the first ten months of FY2005 was 12.8%. Individual income tax receipts (44% of total receipts) were 14.6% higher FYTD as withheld taxes rose 9.0% and non-withheld taxes soared 21.6%. Corporate income taxes (13% of total receipts) rose a strong 26.9% and estate and gift taxes increased by 15.3%.
U.S. net outlays rose 7.8% FYTD compared with the first ten months of FY 2005. Defense spending (19% of total outlays) was up 5.8%. Medicare expenditures (12% of outlays) advanced 12.7% and social security spending (21% of outlays) rose 5.8%.
| US Government Finance | July | June | Y/Y | FY 2005 | FY 2004 | FY 2003 |
|---|---|---|---|---|---|---|
| Budget Balance | -$33.2B | $20.5B | -$53.4B (7/05) |
-$318.3B | -$412.7B | -$377.6B |
| Net Revenues | $159.8B | $264.4B | +12.4% | +14.5% | +5.5% | -3.8% |
| Net Outlays | $193.0B | $243.9B | -1.3% | +7.8% | +6.2% | +7.4% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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