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Did everyone know we are already three months into 2013? Oh sorry, I mean Fiscal Year 2013. For the federal government the FY-13 began on October 1, 2012, and ends on September 30, 2013. Given that info, the CBO’s monthly budget review is out. The report shows we are still improving and heading in the right direction.

Put succinctly, year over year Receipts/Revenue are up (~$60B) and Outlays/Spending are also up (~$31B). Together that's a (~$29B) reduction so far, for our yearly deficit.

Lets dig a little deeper into those numbers because there is more good news.

From CBO (my emphasis)

The federal budget deficit was $293 billion for the first three months of fiscal year 2013 (that is, October through December 2012), $29 billion less than the shortfall recorded in the first quarter of last fiscal year, CBO estimates.
Without shifts in the timing of certain payments in both years, however, the deficit for the three-month period would have been about $60 billion lower this year than in fiscal year 2012.
That’s a reduction of ~$29B in our deficit so far this year. If not for some odd weekends and holidays, our first quarter FY-13 deficit would have been down by ~$60B. Wow! That would translate to a quarter of a trillion dollar full year deficit reduction. Even with a President who's just spending money as fast as he can…NOT!!!

Receipts Detail

Total Receipts Were Up by 11 Percent in the First Quarter of Fiscal Year 2013
Receipts for the first three months of fiscal year 2013 totaled $616 billion, $60 billion more than those in the same period last year. Compared with receipts in the first quarter of last year:
•    Individual income and payroll (social insurance) taxes together rose by $44 billion
•    Net corporate income taxes increased by $7 billion
•    Other revenues rose by $10 billion
The above figures show our economy is ever so slowly improving, despite the constant obstructions exhibited by the Republicans. Remember these receipts are for the first FY-13 quarter, October thru December of 2012, tax rates during that time were unchanged. So the above is a result of more people earning money and companies making more profits.

Spending Detail (my emphasis)

Spending Was About the Same When Adjusted for Timing Shifts
By CBO’s estimate, federal outlays—totaling $909 billion—would have been about the same in the first quarter of 2013 as they were during that period in 2012, if not for shifts that occurred in the timing of certain payments because the scheduled payment dates fell on a weekend or holiday.

•    Social Security, Medicare, and Medicaid—Expenditures for each of the three largest entitlement programs were greater than in the same period last year. Outlays for Social Security benefits increased the most—by $12 billion (or 7 percent). Spending for Medicare rose by $6 billion (or 5 percent) and outlays for Medicaid rose by $5 billion (or 8 percent).

•    Net interest—Outlays for net interest on the public debt were $5 billion (or 7 percent) greater, reflecting both the growing debt held by the public and larger payments for inflation-indexed securities.

•    Fannie Mae and Freddie Mac—Net payments to the government-sponsored enterprises were $14 billion less than those made at the same time last year.

So we are moving forward, ever so slowly, despite the Republicans best efforts.

I just wanted to share some good news....
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Comment Preferences

  •  Well, the rate at which money moves (1+ / 0-)
    Recommended by:
    Roger Fox

    through the economy is still falling

    http://research.stlouisfed.org/...

    and since taxes are collected on money that moves (excluding the transactions internal to Wall Street) the outlook is not particularly good.

    You'll not on the graph that the stimulus is reflected in an upward move to get us out of the recession and then it began to fall again. What accounts for this, I would argue, is hoarding. Regardless of how much money Washington pours into the economy, if the gnomes on Wall Street keep hoarding like Rumpelstiltskin, it won't do us much good.
    Whether it's gold or straw or paper, the accumulation and hoarding are the problem. Currency, like the current in a stream, needs to be moving. Money is for spending. Souls are for saving.

    We organize governments to deliver services and prevent abuse.

    by hannah on Wed Jan 09, 2013 at 05:54:26 AM PST

    •  Exactly, yup, uh huh. (1+ / 0-)
      Recommended by:
      hannah

      And what point is there to worrying about the deficit?

      Zero.

      Unless you are talking about a jobs deficit, unlike this diary.

      FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

      by Roger Fox on Wed Jan 09, 2013 at 08:46:43 AM PST

      [ Parent ]

  •  Oh, and 3+ months into the fiscal year, (0+ / 0-)

    Congress has yet to submitt the FY 13 budget to the President for signature.

    What kind of performance appraisal do they think they'd get in the private sector for being 25+% behind on a major
    suspense?  

    Republicans: if they only had a heart.

    by leu2500 on Wed Jan 09, 2013 at 06:00:32 AM PST

  •  Great diary, thanks for the info (1+ / 0-)
    Recommended by:
    virginislandsguy

    and analysis.

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