Global| May 13 2010U.S. Fiscal 'YTD Budget Deficit Narrows
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal government's April budget balance totaled $-82.7B which was four times the April '09 deficit. Nevertheless, the Fiscal 'YTD deficit narrowed to $799.7B and was somewhat smaller than the FY'09 deficit of $802.3B. Though the [...]
The Federal government's April budget balance totaled $-82.7B which was four times the April '09 deficit. Nevertheless, the Fiscal 'YTD deficit narrowed to $799.7B and was somewhat smaller than the FY'09 deficit of $802.3B.
Though the recession ended, net revenues during the first seven months of FY'10 still fell 4.5% y/y. Individual income tax receipts fell 11.6% y/y as the unemployment rate remained elevated. The rate of decline, however, is down from the peak 29.0% at the end of last year. Corporate tax receipts firmed by 8.9% versus the first seven months of last fiscal year with improved corporate profits. Year-to-date, employment taxes fell 4.8% (just lightly off the peak rate of decline) but unemployment insurance tax receipts improved by 12.3% versus the first seven months of last fiscal year. Estate & gift taxes fell by nearly one-quarter this fiscal year.
Overall outlays fell 2.9% so far this fiscal year versus FY'09 as a commerce & housing credit expired. Social Security payments (21% of outlays) rose 6.7% and net interest payments (5% of outlays) rose 7.9% with higher rates. Medicare expenditures (12% of outlays) rose 11.0% and other health care services spending (10% of outlays) rose 12.4%. "Income security" spending (11% of outlays) continued to jump by one-quarter while defense spending (19% of total outlays) rose 7.8%.
The Government's financial data are available in Haver's USECON database, with extensive detail available in the specialized GOVFIN.
True Legislators Becoming Scarce in Congress from the American Enterprise Institute can be found here.
| US Government Finance | April | FY 'YTD | FY 'YTD | FY 2009 | FY 2008 | FY 2007 |
|---|---|---|---|---|---|---|
| Budget Balance | $-82.7B | $-799.7B | -- | $-1,417.1B | $-454.8B | $-161.5B |
| Net Revenues | $245.3B | $1,199.2B | -4.5% | -16.6% | -1.7% | 6.7% |
| Net Outlays | $328.0B | $1,998.8B | -2.9% | 18.2% | 9.1% | 2.8% |
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.
