For the first time since the June quarter of 2007, the U.S. Treasury is expecting to pay of $35 billion of debt during the June quarter this year. The payoff assumes an end-of-June cash balance of $75 billion.
The combined effects of a payroll tax increase beginning in July and the cost savings of $85 billion from the forced sequestration of government spending have led to higher receipts and lower outlays.
The surplus, though small compared with a projected federal deficit this year of nearly $1 trillion, is not insignificant. It signals that the federal deficit is falling, as some economists said it would.
Remaining is the question of whether the deficit will fall enough or too quickly. Given the weak initial report on first quarter GDP, trimming the budget deficit too fast could weigh even more heavily on the economy.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.