Global| Apr 12 2011U.S. Budget Deficit Expanded In Q2 FY'11
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. Government's budget deficit during the second quarter of FY 2011 totaled $460.4B, according to figures released today by the U.S. Treasury and the Office of Management and Budget. That was greatly expanded from last year's [...]
The U.S. Government's budget deficit during the second quarter of FY 2011 totaled $460.4B, according to figures released today by the U.S. Treasury and the Office of Management and Budget. That was greatly expanded from last year's $328.9B and its percentage of GDP jumped to 12.4%. For March alone, the deficit nearly tripled y/y to $188.2B, about as expected. Year-to-date the deficit totaled $829.4B.
Receipts grew by 4.7% in Q2 '11, a sharp deceleration from growth in Q1. Leading the slowdown was a decline in corporate tax receipts. Growth in individual tax revenues remained strong at 18.2%. Excise taxes also grew a hearty 22.5% but social insurance receipts fell.
Reported outlays increased a stronger 19.3% y/y led by a 24.5% jump in social insurance tax payments followed by a 16.5% gain in veterans benefits and a 9.4% gain in transportation. Outlays for national defense in Q2 fell 2.5% and spending elsewhere either slowed or declined. The decline in the unemployment rate caused claims for unemployment insurance to fall 3.7%.
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.
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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