Fed Budget Deficit Lower This Year

The Congressional Budget Office (CBO) released its latest Monthly Budget Review today saying that the federal deficit for the first 10 months of fiscal year 2012 (ending in September) will be $975 billion, about $125 billion less than the $1.1 trillion deficit through the first ten months of last year.

Total federal receipts in the first 10 months of the fiscal year totaled $2 trillion, $114 billion more than in the same period a year ago. Some highlights:

• Corporate income taxes rose 30% to $42 billion
• Individual income taxes rose 4% to $37 billion
• Social insurance taxes (Social Security, state unemployment, etc.) rose nearly 45 to $26 billion

Spending through July totaled $3 trillion, $11 billion less than in the same period a year ago. Some highlights:

• Medicaid expenses fell -11%, or $27 billion
• Unemployment benefits fell by -21%, or $22 billion
• Education program spending fell by -14%, or $8 billion
• Social Security payments rose by 6%, or $35 billion
• Medicare payments rose 4%, or $17 billion

The CBO press releases are available here and here.

Paul Ausick