Federal Budget Deficit Decreasing
WASHINGTON (AP) -- The federal deficit has improved significantly in the first three months of the new budget year, helped by a continued surge in tax revenues.We would love the see the deficit even lower -- from cuts in spending, not tax increases.
In its monthly budget report, the Treasury Department said Friday that the deficit from October through December totaled $80.4 billion, the smallest imbalance for the first three months of a budget year since The budget year ends Sept. 30.
Tax collections are running 8.2 percent higher than a year ago while government spending is up by just 0.7 percent from a year ago. Last year’s spending totals were boosted by significant payments to help the victims of the Gulf Coast hurricanes.
The Treasury said for December, the government actually ran a surplus of $44.5 billion, the largest surplus ever recorded in December and a gain that reflected a big jump in quarterly corporate tax payments.
The $80.4 billion deficit for the first three months of the current budget year was down 32.6 percent from the imbalance for the same period a year ago of $119.4 billion.
But the last thing this country needs is economic policies that will stifle growth.