Congratulations, America! Your deficit fell 37 percent in 2013.
By Neil Irwin, WashPost, Updated: October 31, 2013
The federal government's 2013 fiscal year ended Sept. 30, though most of us were so busy focusing on the government shutdown that accompanied the new fiscal year that there wasn't much time to reflect on the year that had passed.
Now the Treasury and Office of Management and Budget is out with the final budget results. Surprise! The deficit fell quite a bit in 2013. The federal government took in $680 billion less revenue than it spent, or about 4.1 percent of gross domestic product. In 2012, those numbers were $1.087 trillion and 6.8 percent of GDP. That means the deficit fell a whopping 37 percent in one year.
This is the first sub-$1 trillion and sub-5 percent of GDP deficit since the 2008 fiscal year, which ended the very month that Lehman Brothers fell and a deep crisis set in.
What's behind it?
Most of all, there was more revenue. Government receipts totaled $2.774 trillion, up $325 billion from 2012, and rising to 16.7 percent of GDP from 15.2 percent. That reflects in part a stronger economy that increased income and payroll taxes. It also includes the expiration of a payroll tax holiday that increased tax receipts, and higher rates for upper-income Americans agreed to for this calendar year.
(More here.)
The federal government's 2013 fiscal year ended Sept. 30, though most of us were so busy focusing on the government shutdown that accompanied the new fiscal year that there wasn't much time to reflect on the year that had passed.
Now the Treasury and Office of Management and Budget is out with the final budget results. Surprise! The deficit fell quite a bit in 2013. The federal government took in $680 billion less revenue than it spent, or about 4.1 percent of gross domestic product. In 2012, those numbers were $1.087 trillion and 6.8 percent of GDP. That means the deficit fell a whopping 37 percent in one year.
This is the first sub-$1 trillion and sub-5 percent of GDP deficit since the 2008 fiscal year, which ended the very month that Lehman Brothers fell and a deep crisis set in.
What's behind it?
Most of all, there was more revenue. Government receipts totaled $2.774 trillion, up $325 billion from 2012, and rising to 16.7 percent of GDP from 15.2 percent. That reflects in part a stronger economy that increased income and payroll taxes. It also includes the expiration of a payroll tax holiday that increased tax receipts, and higher rates for upper-income Americans agreed to for this calendar year.
(More here.)
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1 Comments:
As the government would say, this is directionally correct. What Irwin doesn't cover is that our total debt continues to grow and if/when interest rates climb the real 'fun' will start. A question to those on the left side of the aisle - you seem to celebrate a growth in government receipts - at what level would you be satisfied?
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