The federal budget deficit was $320 billion in the first quarter of fiscal year 2012

[웃 910]

The federal budget deficit was $320 billion in the first quarter of fiscal year 2012, CBO estimates, $49 billion less

than the deficit recorded in the same period in fiscal year 2011. But $26 billion of that difference resulted from shifts

in the timing of certain payments because the regular payment dates fell on weekends or holidays; otherwise, the

deficit would have declined by only $23 billion. Receipts were up by 4 percent, compared with those in the same

period a year before. Adjusted for timing shifts, outlays were essentially unchanged. Later this month, CBO will

issue new budget projections spanning the period from 2012 through 2022.

Outlays in December 2011 were $8 billion greater than

those in December 2010, CBO estimates. The shifting

of payments because of weekends and holidays affected

spending in both years, but it boosted outlays by

$5 billion more in December 2011 than in December

2010. Without those timing shifts, outlays in December

2011 would have been $3 billion higher than they were

in December 2010.

Net payments to Fannie Mae and Freddie Mac climbed

by $11 billion because the housing agencies required

significantly larger cash infusions from the federal

government than they did in December 2010. Spending

increased by smaller amounts in several other areas. In

contrast, Medicaid outlays were $7 billion less than

those in December 2010, when the federal government

was temporarily reimbursing states at a higher matching

rate. Unemployment insurance payments fell by

$3 billion.

The deficit in December 2011 was $84 billion, CBO

estimates, $6 billion more than the deficit a year earlier.

Without shifts in the timing of certain payments, the

deficit in December 2011 would have been just

$1 billion more than it was in December 2010.

CBO estimates that receipts in December 2011 were

$2 billion (or 1 percent) higher than those a year earlier.

Net receipts of corporate income taxes rose by

$7 billion (or 16 percent), primarily because quarterly

estimated payments in December 2011 were higher than

those a year before, which were unusually weak because

of changes in depreciation rules enacted late that year.

Receipts from nonwithheld individual income and

payroll taxes and unemployment insurance taxes

increased by a total of $2 billion.

Those gains were largely offset by a drop of $7 billion

(or 4 percent) in withholding for individual income and

payroll taxes. That decline occurred because the payroll

tax rate was reduced in 2011 and because December

2011 had one fewer working day than December 2010.

CBO estimates that the Treasury will record a deficit of

$320 billion for the first quarter of fiscal year 2012,

$49 billion less than the deficit in the first quarter of

2011. Revenues were $23 billion higher and outlays

were $26 billion lower than the amounts recorded in the

first quarter of fiscal year 2011.

Receipts in the first quarter of fiscal year 2012 were

about 4 percent more than those a year earlier. Most of

the gains stemmed from higher corporate income taxes

(which rose by $18 billion, or 51 percent). Receipts

from individual income taxes also increased—by

$15 billion (or 6 percent). Offsetting the gains were

lower social insurance (payroll) tax receipts, which

declined by $11 billion (or 6 percent) because the

payroll tax rate was reduced in 2011.

The increase in corporate income tax receipts occurred

because tax payments rose by $6 billion and refunds fell

by $13 billion. Corporate refunds were unusually high

in the first quarter of fiscal year 2011 in the aftermath of

the recession; this year the amount is more comparable

with those of the years before the recession.

Altogether, individual income and payroll tax receipts

rose by $4 billion, or about 1 percent. Several factors

contributed to that increase: Refunds of individual

income taxes declined by $5 billion; nonwithheld

receipts of individual income and payroll taxes rose by

$3 billion; and receipts from unemployment taxes

increased by $2 billion, as states replenished trust funds

that had been depleted during the recession. Much of the

gain was offset by a $6 billion (or 1 percent) drop in

withholding of individual income and payroll taxes,

primarily because the payroll tax rate in effect during

the first quarter of fiscal year 2012 was lower than that

in the same period a year earlier.

Receipts from estate and gift taxes rose by $2 billion,

and collections from excise taxes increased by

$1 billion, but receipts from the Federal Reserve

declined by $3 billion, as its portfolio has shifted to

lower-yielding, less-risky assets.

Without shifts in the timing of certain government

payments, first-quarter outlays would have been about

the same as those in the same period a year before.

Outlays for Medicaid fell by $15 billion (or 20 percent)

because, by law, the federal government’s share of the

program’s costs dropped in July 2011. Adjusted for the

shift in the timing of military paychecks, defense

spending was $10 billion (or 5 percent) lower than in

the same period a year before. In addition, spending for

unemployment benefits fell by $9 billion (or 26 percent)

because fewer claims were filed.

Those decreases were partially offset by an $11 billion

increase in net payments to the government-sponsored

enterprises Fannie Mae and Freddie Mac. Spending for

net interest on the public debt increased by $4 billion (or

6 percent) in the first quarter of fiscal year 2012.

Adjusted for timing shifts, outlays for Social Security

benefits and Medicare also were higher than in the first

quarter of 2011, by $6 billion (or 3 percent) and

$1 billion (or 1 percent), respectively.

Expenditures for “Other Activities,” adjusted for timing

shifts, were $12 billion (or 5 percent) higher than in the

first quarter of fiscal year 2011. Net outlays for

stabilizing corporate credit unions rose by $12 billion,

mostly because outlays in fiscal year 2011 were reduced

by loan repayments from credit unions. In contrast,

education spending dropped by $6 billion (or

26 percent) as spending from the 2009 economic

stimulus act waned.

http://www.cbo.gov/doc.cfm?index=12662

[slim 1,530]

Cut welfare.

[mawilson 2,133]

The federal budget deficit was $320 billion in the first quarter of fiscal year 2012, CBO estimates, $49 billion less

than the deficit recorded in the same period in fiscal year 2011.

Am I supposed to be happy about that? "Only 320 billion?"

[Mr. Big Dog 10,747]

Am I supposed to be happy about that? "Only 320 billion?"

It's better than $369 billion.

[웃 910]

Am I supposed to be happy about that? "Only 320 billion?"

Yes. You should go out and celebrate this weekend!