CBO Issues Its Monthly Report on the Deficit, Outlays, and Revenues

The Congressional Budget Office (CBO) issued its Monthly Review late last week (and today, the Treasury released its Monthly Statement for May). CBO estimates that the federal government incurred a deficit of $941 billion for the first eight months of fiscal year 2010, about $51 billion less than for the same time period last year.
Receipts through May were about $29 billion lower than those in the same period last year, primarily due to a decline of  about $71 billion (or 6 percent) in individual income and payroll taxes but made up partially by a $13 billion (or 18 percent) in net corporate receipts and about $30 billion in receipts from the Federal Reserve. Outlays were 3 percent lower but mainly due to the decline in TARP spending and payments to Fannie Mae and Freddie Mac. Outlays were up overall, due to stimulus spending for state education grants, additional unemployment benefits, refundable tax credits, and the federal share of Medicaid assistance. In addition, outlays for net interest on the public debt were 22 percent higher through May than last year, due to adjustments in the value of inflation-indexed securities.
In addition, CBO estimates that the May deficit was, at $142 billion, $48 billion lower higher than it was last May (mainly due to calendar timing shifts in certain payments).