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.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!!!
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.
Total Receipts Were Up by 11 Percent in the First Quarter of Fiscal Year 2013The 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.
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
Spending Detail (my emphasis)
Spending Was About the Same When Adjusted for Timing ShiftsSo we are moving forward, ever so slowly, despite the Republicans best efforts.
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.
I just wanted to share some good news....