Global| Mar 12 2012U.S. Budget Deficit Is Reduced By Spending Restraint
by:Tom Moeller
|in:Economy in Brief
Summary
During February, the Federal Government ran a budget deficit of $231.7B, according to figures released by the U.S. Treasury and the Office of Management and Budget. So far this fiscal year, the deficit totaled $580.8B, down from [...]
During February, the Federal Government ran a budget deficit of
$231.7B, according to figures released by the U.S. Treasury and the Office of Management and Budget.
So far this fiscal year, the deficit totaled $580.8B, down from $641.3B
during the first five months of FY'11. As a percent of GDP the deficit is
running slightly below last year's of 8.6%.
So far for FY'12, reported outlays eased 2.4% due to across-the-board declines in spending. Health services spending fell 11.8% while income security payments fell 10.5% due to lower unemployment. Defense outlays dropped 3.2% and Medicare outlays were off 2.5%. Growth in social security outlays was steady with a 4.6% rise.
For FY'12 so far, net-receipts rose 2.8% versus FY'11. The lessened increase reflected just 0.6% y/y growth in individual income tax payments. Conversely, corporate tax payments jumped 58.6% y/y with the improved economy. Social insurance taxes fell 1.2% due to last year's tax cut.
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.
| US Government Finance | Feb. | FY'12 YTD | FY'11 | FY'10 | FY'09 |
|---|---|---|---|---|---|
| Budget Balance | $-231.7B | $-580.8 | $-1,298.6 | $-1,294.2B | $-1,415.7B |
| As a percent of GDP | -- | -- | 8.6 | 8.0 | 9.5 |
| % of Total | |||||
| Net Revenues (Y/Y % Change) | 100 | 2.8 | 6.5 | 2.7 | -16.6 |
| Individual Income Taxes | 47 | 0.6 | 21.5 | -1.8 | -20.1 |
| Corporate Income Taxes | 8 | 58.6 | -5.4 | 38.5 | -54.6 |
| Social Insurance Taxes | 36 | -1.2 | -5.3 | -2.9 | -1.0 |
| Excise Taxes | 3 | 9.8 | 8.2 | 7.1 | -7.2 |
| Miscellaneous | 4 | -31.2 | 6.2 | 86.2 | 3.7 |
| Net Outlays (Y/Y % Change) | 100 | -2.4 | 4.2 | -1.8 | 18.2 |
| Nat'l Defense | 20 | -3.2 | 2.1 | 4.6 | 7.6 |
| Health | 10 | -11.8 | 1.0 | 10.4 | 19.1 |
| Medicare | 20 | -2.5 | 7.5 | 5.0 | 10.1 |
| Income Security | 17 | -10.5 | -3.3 | 16.7 | 24.9 |
| Social Security | 20 | 4.6 | 3.4 | 3.5 | 10.7 |
| Veterans Benefits | 4 | -5.3 | 17.3 | 13.6 | 12.7 |
| Interest | 6 | 5.2 | 15.7 | 2.9 | -24.6 |
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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