US budget deficit at 5-yr low of $680 bn
1 Nov 2013 10:42 PM GMT
For the first time in five years, the US government has run a budget deficit below $1 trillion. The Obama government has announced that the deficit for the 2013 budget year totaled $680.3 billion, down from $1.09 trillion in 2012. That’s the smallest imbalance since 2008 when the government ran a $458.6 billion deficit. However, it’s still the fifth-largest deficit of all time.
The deficit is the gap between the government’s tax revenue and spending. It narrowed for the budget year that ended on September 30 because revenue rose while spending fell. Revenue jumped 13.3 per cent to $2.77 trillion while government spending declined 2.4 per cent to $3.45 trillion.
A stronger US economy created more jobs and income over the past year, which generated greater tax revenue. At the same time, the Obama administration and Congress agreed in January to end a temporary cut in Social Security taxes and also to raise income taxes on the wealthy. And spending fell in part because of across-the-board cuts that took effect in March.
The Obama administration and Republicans in Congress are now engaged in another battle over the budget and Obama’s health insurance program. That led to a 16-day partial government shutdown this month.
And while the parties reached a deal to re-open the government in October, it contained an agreement to fund government operations only until January 15 and suspend the government’s borrowing limit until February 7.
The deficit is the gap between the government’s tax revenue and spending. It narrowed for the budget year that ended on September 30 because revenue rose while spending fell. Revenue jumped 13.3 per cent to $2.77 trillion while government spending declined 2.4 per cent to $3.45 trillion.
A stronger US economy created more jobs and income over the past year, which generated greater tax revenue. At the same time, the Obama administration and Congress agreed in January to end a temporary cut in Social Security taxes and also to raise income taxes on the wealthy. And spending fell in part because of across-the-board cuts that took effect in March.
The Obama administration and Republicans in Congress are now engaged in another battle over the budget and Obama’s health insurance program. That led to a 16-day partial government shutdown this month.
And while the parties reached a deal to re-open the government in October, it contained an agreement to fund government operations only until January 15 and suspend the government’s borrowing limit until February 7.
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