Global| Jul 13 2006June U.S. Budget Surplus As Expected
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. federal government ran a budget surplus in June, as it usually does. The as expected figure of $20.5B narrowed the FY06 to-date budget deficit to $206.5B versus a deficit of $249.4B during the first nine months of FY05. [...]
The U.S. federal government ran a budget surplus in June, as it usually does. The as expected figure of $20.5B narrowed the FY06 to-date budget deficit to $206.5B versus a deficit of $249.4B during the first nine months of FY05.
Growth in '06 net revenues FYTD versus the first nine months of FY05 remained strong at 12.8%. Individual income tax receipts (44% of total receipts) rose 14.5% FYTD as withheld taxes rose 8.4% due to improved job markets and non-withheld taxes surged 21.7%. The improved job market also lifted employment taxes (36% of total receipts) 6.3% y/y.
Corporate income taxes (10% of total receipts) surged 27.0% y/y during FY06's first nine monthsand estate & gift taxes rose 15.1% y/y.
U.S. net outlays rose 8.8% FYTD versus '05. Defense spending (19% of total outlays) rose 7.8% during the first nine months of FY06 versus '05.Medicare spending (12% of total outlays) jumped 16.5% and spending on social security (21% of total outlays) remained strong at 5.8%. Spending on income security grew just 2.7%.
Social Security and Medicare : the impending fiscal challenge from the Federal Reserve Bank of Kansas City can be found here.
The Mid-Session Review of the U.S. Government Budget for FY 2007 is available here.
| US Government Finance | June | May | Y/Y | FY 2005 | FY 2004 | FY 2003 |
|---|---|---|---|---|---|---|
| Budget Balance | $20.5B | $-42.8B | $22.9B (6/05) | $-318.3B | $-412.7B | $-377.6B |
| Net Revenues | $264.4B | $192.7B | 12.6% | 14.5% | 5.5% | -3.8% |
| Net Outlays | $243.9B | $235.5B | 15.1% | 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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