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Wednesday, August 12, 2015

The Shrinking Deficit

by Calculated Risk on 8/12/2015 02:07:00 PM

From the WSJ: Budget Deficit Totaled $488 Billion For Year Ended July, Down 9% From Year Earlier

The U.S. budget deficit rose in July but stood around 9% below its year-earlier level, the Treasury Department said on Wednesday.

The budget outlook has improved this year as economic growth has boosted revenues, but outlays were significantly higher in July from a year earlier, in part due to calendar timing differences. The U.S. ran a $149 billion deficit in July, a month in which the government typically runs a deficit.
The Congressional Budget Office last week said it expected the U.S. would run a $425 billion deficit for the fiscal year that ends Sept. 30, down more than 12% from its earlier forecast of $486 billion and from the prior year’s $483 billion deficit.
The most recent CBO projection was for the fiscal 2015 budget deficit to be 2.7% of GDP. Right now it looks like fiscal 2015 will be under 2.4% (a significant improvement).