Despite Republican rhetoric concerning the slow economy and growing federal budget deficit, the Congressional Budget Office just indicated that the Treasury Department has found that the deficit for the federal budget at the end of the third quarter of the 2012 federal fiscal year is $66 billion less than was incurred through the same time period for FY 2011. Remember that the federal fiscal year begins in October of the year preceding the FY date so the third quarter ended the last day of June. At that time the deficit for FY 2012 was $905 billion compared to the deficit for FY 2011 which was $971 billion.
OK, $905 billion for 9 months is still a lot of money and the Republicans can and will argue that the policies of the Obama administration will spend us into oblivion. BUT – the data suggest that were moving in the correct direction. (I hesitated to use the term “right” direction.) Federal government expenses were up about 1% during the first three quarters of the FY 2012 compared to the same period in FY 2011, while federal revenues were up about 5%. Sure it’s a limited indicator that policies are working, but the fact that there was a 5% increase compared to last year is no small matter. Just think what the increase in revenue can be if the Bush era tax cuts for fat cats are eliminated. We might even be able to bring back some needed jobs in the public sector.