Large April Surplus Won’t Erase Massive Deficits
Thanks to record-high tax payments, the federal government enjoyed a $308 billion surplus in April of 2022, according to the latest Monthly Budget Review from the Congressional Budget Office, but has still borrowed $360 billion over the course of the fiscal year. The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:
Last month’s surplus was that rare piece of good news you almost never get when it comes to the federal budget. But sadly, a $308 billion surplus will barely make a dent in our $24 trillion national debt. And it won’t prevent us from running massive annual deficits as far as the eye can see.
Over the first seven months of this fiscal year, we’ve borrowed a staggering $1.6 billion per day. Meanwhile, our debt remains near record highs, inflation is the worst it’s been in 40 years, and lawmakers haven’t even started to discuss putting forward a budget.
The country needs a plan to get our borrowing under control. As a starting point, lawmakers should avoid legislative and executive actions that further add to deficits. But more than that, they will need to increase revenues and control spending to make real progress.
Our aim should be higher than the occasional bit of positive news.
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