Monthly Budget Review Reports $434 billion deficit in FY 2010 Thus Far
The Congressional Budget Office came out with their Monthly Budget Review yesterday. It states that the federal government incurred a deficit of $434 billion for the first four months of fiscal year 2010. This is $40 billion more than the deficit recorded for this same period last year, partly due to the fact that revenues have fallen by 11 percent. Outlays, however, were four percent lower than they were at this time last year.
CBO reports the January deficit, was, at $46 billion, $17 billion lower than it was last January. However, as CBO points out, after taking into account some timing shifts, the deficit is actually $33 billion higher than it was last January. Receipts in January were $23 billion lower than last year, due mostly to a decline in withheld taxes, as well as certain provisions in the American Recovery and Reinvestment Act (ARRA). The greatest growth in the level of outlays was affected by increased spending on net interest for the public debt, which was up by $12 billion.