Global| Jun 13 2011U.S. Budget Deficit Improves This Fiscal Year
by:Tom Moeller
|in:Economy in Brief
Summary
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 [...]
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 |
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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