The U.S. government posted the widest monthly budget surplus in more than five years in June, as spending plunged 47 percent and a stronger economy lifted tax receipts, the Treasury Department said.
Receipts exceeded outlays by $116.5 billion last month, the biggest surplus since April 2008, compared with a $59.7 billion deficit in June 2012, the Treasury said today in Washington. The result exceeded the $115 billion median estimate in a Bloomberg survey of 21 economists.
The Obama administration projects the federal budget deficit will shrink to $759 billion in the year ending Sept. 30, the smallest gap in five years as a stronger economy bolsters revenue. Increased tax collections and rising payments to the Treasury from Fannie Mae and Freddie Mac as housing improves are taking the pressure off of Congress and the White House to achieve an agreement on dealing with spending, deficits or automatic budget cuts.
"Tax receipts are continuing to improve" and that will "persist throughout the rest of the year because the economy is doing better," said Thomas Simons, a government-debt economist in New York at Jefferies LLC, which predicted a $116 billion surplus for last month.
Today's report showed revenue rose 10.2 percent in June to $286.6 billion from the same month a year earlier. Spending totaled $170.1 billion compared with $319.9 billion a year earlier, it showed.
Full article: http://www.bloomberg.com/news/2013-07-11/u-s-posts-widest-budget-surplus-since-2008-on-stronger-receipts.html
Receipts exceeded outlays by $116.5 billion last month, the biggest surplus since April 2008, compared with a $59.7 billion deficit in June 2012, the Treasury said today in Washington. The result exceeded the $115 billion median estimate in a Bloomberg survey of 21 economists.
U.S. President Barack Obama's administration projects the federal budget deficit will shrink to $759 billion in the year ending Sept. 30, the smallest gap in five years as a stronger economy bolsters revenue. Photographer: Sean Gallup/Getty Images
"Tax receipts are continuing to improve" and that will "persist throughout the rest of the year because the economy is doing better," said Thomas Simons, a government-debt economist in New York at Jefferies LLC, which predicted a $116 billion surplus for last month.
Today's report showed revenue rose 10.2 percent in June to $286.6 billion from the same month a year earlier. Spending totaled $170.1 billion compared with $319.9 billion a year earlier, it showed.
Full article: http://www.bloomberg.com/news/2013-07-11/u-s-posts-widest-budget-surplus-since-2008-on-stronger-receipts.html
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