Global| Apr 13 2006U.S. Budget Deficit Deeper The Last Two Months
by:Tom Moeller
|in:Economy in Brief
Summary
During March, the U.S. federal government again posted a deeper budget deficit versus the same month last year. The deficit of $85.5B versus last March's deficit of $71.2B pulled the FY06 to date budget deficit of $303.0B deeper [...]
During March, the U.S. federal government again posted a deeper budget deficit versus the same month last year. The deficit of $85.5B versus last March's deficit of $71.2B pulled the FY06 to date budget deficit of $303.0B deeper versus 294.6B during the first six months of FY05.
Net revenues surged 45.8% m/m, made up for most of the February collapse and rose 10.5% during the first six months of this fiscal year versus FY05. The rate of gain in individual income tax receipts (44% of total receipts), however, slowed to 8.5% y/y though the gain in corporate income taxes (10% of total receipts) remained strong at 30.5% during fiscal year 06's first six months.
The improved job market raised employment taxes (36% of total receipts) 7.2% y/y and estate & gift taxes surged by 16.2% y/y.
U.S. net outlays jumped during March by 13.7% versus last March and the growth in FYTD outlays rose to 8.7%, the highest in nearly three years. Defense spending (19% of total outlays) surged 16.1% y/y and for the first six months of FY06 rose 8.9% from '05. The growth in Medicare spending (12% of total outlays) also jumped to 46.0% y/y and lifted FYTD growth to 15.5% while spending on social security (21% of total outlays) remained strong at 5.7%.
| US Government Finance | Mar | Feb | Y/Y | FY 2005 | FY 2004 | FY 2003 |
|---|---|---|---|---|---|---|
| Budget Balance | $-85.5B | $-119.2B | $-71.2B (3/05) | $-318.3B | $-412.7B | $-377.6B |
| Net Revenues | $164.6B | $112.9B | 10.6% | 14.5% | 5.5% | -3.8% |
| Net Outlays | $250.0B | $232.1B | 13.7% | 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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