Federal Budget Deficit 24% Higher Over Same Time Period Last Year

By on December 7, 2012 in Current Events with 14 Comments

According to the CBO’s latest monthly budget review, the federal budget deficit was $292 billion for the first two months of FY 2013, a 24% increase over the same time period last year.

The U.S. Treasury reported a deficit of $120 billion for October and $172 billion in November. The deficit in November is about $35 billion (or roughly 26%) more than last November’s deficit.

The CBO noted that for the first 2 months of FY 2013, revenues rose by $30 billion, but outlays increased by $87 billion, indicating an ongoing steady increase in spending. Most of the gains in revenues came from increases in net receipts from individual and payroll taxes which were up 8%.

However, expenditures for each of the three main entitlement programs were higher than the same period last year accounting for the growing increase in spending. Social Security benefits increased the most; expenditures for it are up $8 billion or 7%; Medicare rose $6 billion or 8%, and Medicaid rose $4 billion or 9%.

A recent GAO report stated that the federal government is on an unsustainable long-term fiscal path, due primarily to the entitlement programs cited in the CBO’s monthly report.

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.