February’s budget deficit was $203.54 billion versus almost $231.7 billion for the same month a year ago. Bloomberg was calling for a deficit of some $205 billion. Should we bother mentioning that this year’s February had one day less in it? Federal spending was up 2% to $1.505 trillion. So what you are seeing is slower spending growth, but not slower spending.
It is hard to celebrate close to $100 billion less when you consider that the run rate on a straight-line is still in the range of close to a $1.2 trillion deficit even if recent projections from the CBO appear to finally be under $1 trillion (almost $850 billion). As per the “straight-line” estimate, that is if the rates were averaged from the first five months and annualized on a static 12-month basis.
Today’s report is on the heels of a Republican budget proposal aiming at $4.6 trillion in spending cuts along with a tax code revision. Democrats seem very unlikely to jump on board. We are still of course awaiting a White House budget proposal and the nation has now operated for four years without a budget.
By the way, we have still been given no explanation from the great profitable and “independent” U.S. Postal Service how they added some 4,500 workers to their payrolls in February.
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