The Herald of Everett, Washington
HeraldNet on Facebook HeraldNet on Twitter HeraldNet RSS feeds HeraldNet Pinterest HeraldNet Google Plus HeraldNet Youtube
HeraldNet Newsletters  Newsletters: Sign up | Manage  Green editions icon Green editions

Calendar

Splash! Summer guide

Weekly business news
HeraldNet Newsletter Delivered to your inbox each week.
Published: Wednesday, June 11, 2014, 2:35 p.m.

Deficit falls as economy, jobs boost revenue

WASHINGTON -- The U.S. posted a $130 billion budget deficit in May and the smallest shortfall for the first eight months of a fiscal year since 2008, as a stronger economy and rising employment bolster revenue.
The deficit last month was about $9 billion less than the $139 billion shortfall in May 2013, the Treasury Department said Wednesday in Washington. The median estimate in a Bloomberg survey of 20 economists called for a $130.5 billion gap.
"U.S. budget dynamics have been on a much better trajectory as of late, with both cuts to spending and higher revenues helping to push fiscal year 2014 deficit projections substantially lower," said Gennadiy Goldberg, U.S. strategist at TD Securities USA in New York. "The revenue component is indicative of a gradually recovering economy."
For the fiscal year, which began Oct. 1, the government is running a budget deficit 30 percent smaller than it was a year earlier and the narrowest at the eight-month mark since 2008. Revenues for that period are 7 percent higher than a year earlier and outlays are 2 percent lower.
In the fiscal year through May, the government posted a $436.4 billion deficit compared with a $626.3 billion shortfall in the same period a year earlier, the figures showed.S
Wednesday's Treasury report showed revenue increased to $200 billion last month from $197 billion in May 2013. Spending totaled $330 billion, a 2 percent decline from the same month a year earlier, the figures showed.
The Congressional Budget Office in April projected that the federal deficit will decline to $492 billion this fiscal year, the smallest in six years, from $680 billion in 2013 and a record $1.4 trillion when President Barack Obama took office in January 2009.
Next year, the shortfall will decline further, to $469 billion, the nonpartisan agency said. The 2014 deficit will be 2.8 percent of gross domestic product, according to CBO, compared with 4.1 percent of GDP in 2013.
The U.S. labor market has improved this year. Payrolls pushed past their U.S. pre-recession peak for the first time in May, the fourth consecutive month employment increased by more than 200,000, the first time that's happened since early 2000.

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

HeraldNet highlights

Opportunity knocks
Opportunity knocks: Lynch’s holdout opens door for Seahawks' Michael, Turbin
Paradise on high
Paradise on high: Not just for high-altitude hiking, take a day trip to Mt. Rainier
Looking for a friend?
Looking for a friend?: Animals up for adoption at the Everett shelter (new photos)
Currency catching on a bit
Currency catching on a bit: Everett coffee stand now accepting Bitcoin