March 8th, 2011
Econintersect: USA government revenue rose 8% fiscal year through February 2011, while expenditures rose 4%. The deficit increased by $642 billion in these first five months of fiscal year 2011. This according to the monthly Congressional Budget Office (CBO) report.
Spending for the first five months of fiscal year 2011 was $58 billion (or 4 percent) higher than outlays in the same period last year, CBO estimates. Follow up:
Follow up:That growth is almost entirely explained by advance payments made to the Federal Deposit Insurance Corporation in fiscal year 2010. In the absence of those prepayments to the government (which were recorded as negative outlays), total spending has grown by less than 1 percent in 2011, CBO estimates.
The slow growth can be attributed to lower net spendingfor payments to Fannie Mae and Freddie Mac (down by $14 billion) and for the Troubled Asset Relief Program (down by $4 billion). Additionally, outlays for unemployment benefits decreased by $14 billion (or 20 percent) because of fewer claims and lower average benefits.
In contrast, net interest on the public debt rose by $11 billion (or 13 percent) as a result of substantial growth in the national debt over the past year. Outlays for Medicaid increased by $7 billion (or 6 percent).
Spending for Social Security and defense grew by 4 percent and 3 percent, respectively. Medicare spending was up by only 3 percent, an unusually low
rate of growth.
In the category “Other Activities,” increases in several areas, including veterans’ programs and food and nutrition assistance, were offset by reduced spending in other areas, including education programs, refundable tax credits, and international assistance.