Global| Mar 10 2010U.S. Monthly Budget Deficit A Record
by:Tom Moeller
|in:Economy in Brief
Summary
As the Federal government's February budget deficit reached a record $220.9B, the figure pulled the Fiscal YTD deficit to $651.6B which was larger than any past deficit for twelve months, except 2009. Recession pulled net revenues [...]
As the
Federal government's February budget deficit reached a record $220.9B,
the figure pulled the Fiscal YTD deficit to $651.6B which was larger
than any past deficit for twelve months, except 2009.
Recession pulled net revenues during the first five months of FY'10 down 7.0% y/y. Individual income tax receipts fell 14.0% y/y through February reflecting higher unemployment. The rate of decline, however, is half that at the end of last year. Corporate tax receipts mirror the decline in profitability and fell 14.1%, though that rate of decline also eased sharply. Year-to-date, employment taxes fell a record 3.5% but unemployment insurance tax receipts rose a surprising 3.8%. Estate & gift taxes fell by one-third after an 18.6% decline during FY'09.
Overall outlays were boosted 16.8% during the first five months of FY'10 as Social Security payments (21% of outlays) rose 7.8% and net interest payments (5% of outlays) started to rise with higher rates. Medicare expenditures (12% of outlays) fell slightly but other health care services spending (10% of outlays) rose 21.3%. "Income security" spending (11% of outlays) jumped by one-quarter while defense spending (19% of total outlays) rose 2.9%.
The Government's financial data are available in Haver's USECON database, with extensive detail available in the specialized GOVFIN.· Fiscal Policy Choices is the title of CBO Director Doug Elmendorf's presentation to the National Association for Business Economics on Monday and it can be found here.
| US Government Finance | February | FY 'YTD | FY 'YTD | FY 2009 | FY 2008 | FY 2007 |
|---|---|---|---|---|---|---|
| Budget Balance | $-220.9B | $-651.6B | $-651.6 | $-1,417.1B | $-454.8B | $-161.5B |
| Net Revenues | $107.5B | $800.5B | -7.0% | -16.6% | -1.7% | 6.7% |
| Net Outlays | $328.4B | $1,452.1B | 16.8% | 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.
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