U.S. Budget Deficit on Track to Narrow Substantially This Year

Treasury Department u.s. debt budget deficit economy
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By Jason Lange

WASHINGTON -- The United States ran a budget deficit in July, although government revenues increased from a year earlier due to tax hikes and a strengthening economy, a report from the Treasury showed Monday.

The U.S. government spent $98 billion more than it took in last month, with the deficit driven by spending on health-care programs, pensions for the elderly and the military.

Analysts polled by Reuters had expected deficit of $96 billion.

The United States customarily runs deficits in July as there are few tax deadlines during the month.

The country has run full-year budget deficits continuously since 2001, and the amount of red ink has grown immensely since 2009 when a surge in unemployment fueled higher spending on the social safety net.

But this year, the deficit appears on track to narrow substantially.

One major reason is that Washington ratcheted austerity efforts by raising tax rates, which has helped tax receipts. It has also slashed the federal budget, although in July total spending rose to $298 billion from $254 billion in the same month of 2012.

Another factor that has been leading to a lower deficit is the steam that appears to be gathering in the U.S. economy. That is also lifting tax receipts, which rose to $200 billion in July from $185 billion in July 2012.

So far in the current fiscal year, which began in October, the federal government has run $607 billion into the red, a narrowing from the $974 billion deficit chalked up in the same 10 months of fiscal year 2012.



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bufordshlup

Is the $85 billion a month in QE counted as debt?

August 13 2013 at 9:32 PM Report abuse rate up rate down Reply
betty_brock

See, liberals do have a sense of humor.

August 13 2013 at 9:10 PM Report abuse rate up rate down Reply
betty_brock

"Narrow substantially" LOL

August 13 2013 at 6:20 PM Report abuse +1 rate up rate down Reply
1 reply to betty_brock's comment
betty_brock

That is really funny. It's like a drop in the ocean.

August 13 2013 at 6:20 PM Report abuse +1 rate up rate down Reply
coinman507

Its funny how the democrates make 607 billion in debt this year sound so good ! i bet you cannot run your home budget that way. We are still only seven months into the year. small pox is good also if it dose not kill you the first time, you are immune to it for life.

August 13 2013 at 4:20 PM Report abuse rate up rate down Reply
1 reply to coinman507's comment
chris1011

Did you buy your house and cars with cash? If not, and you borrowed the money, then you are running a deficit. You're in debt.

August 13 2013 at 5:00 PM Report abuse -2 rate up rate down Reply
2 replies to chris1011's comment
betty_brock

This is more than a house and car. It is trillions in debt that our children and grand children will never be able to repay.

August 13 2013 at 6:16 PM Report abuse rate up rate down
betty_brock

You kill me, Evan.

August 13 2013 at 8:37 PM Report abuse rate up rate down
betty_brock

This time the smoke and mirrors won't work. America isn't that dumb........except for Evan.

August 13 2013 at 1:52 PM Report abuse +1 rate up rate down Reply
michael_vici

中国隐秘共产党控制纳米分子虐待人,我是受害者。我被控制着总是纠结于一些小的事情上,例如身上哪里没有弄干净,就这样的问题我可以纠结一个晚上。一个劲的清洗。比如我上完厕所,我怕阴茎上带尿,于是就用纸擦干净,可是我的手好像又脏了,于是再洗手。水溅到身上了,又要洗身上。就这样洗不完了。现在我被虐待的实在不行了。我就想让别人知道我被虐待了,还有没有天理王法。

August 13 2013 at 11:52 AM Report abuse -2 rate up rate down Reply