Monday, April 27, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

US records $130 billion budget deficit in May

By
From page A10 | June 12, 2014 |

WASHINGTON — The U.S. government’s monthly budget returned to deficit in May after a big April surplus. But the overall imbalance so far is far smaller than it was the same period last year, putting the country on track for the lowest annual deficit in six years.

The Treasury Department said Wednesday that the May deficit totaled $130 billion after a surplus of $106.9 billion in April, a month when the government usually runs surpluses because of a flood of tax revenues.

For the first eight months of this budget year, the deficit totals $436.4 billion, down 30 percent from $626.3 billion for the same period in 2013. It was the smallest imbalance since 2008. The Congressional Budget Office is forecasting a deficit of $492 billion for the full budget year ending Sept. 30.

The government has run a deficit in May, a month when there are no major tax payments, for 59 out of the past 60 years. This year’s May deficit was slightly lower than the $138.7 billion deficit in May 2013.

The improvement this year reflects a stronger economy and labor market, which translates into more income and higher tax revenues. The government has also trimmed spending to gain control of soaring deficits in recent years.

Revenues this year totaled $1.93 trillion through May, up 7.5 percent from the same period a year ago. Government spending over this period totaled $2.37 trillion, a drop of 2.3 percent from a year ago.

In 2008, the government recorded a deficit of $458.6 billion, which was the record high at the time. But that record was soon eclipsed as the government ran annual deficits surpassing $1 trillion for the next four years. Those deficits reflected a deep recession, which reduced tax revenue, and higher government spending to stabilize the financial system and pay benefits to people who had lost jobs.

After peaking at $1.4 trillion in 2009, the deficit has been falling. It dropped to $680.2 billion last year.

Over the next decade, CBO is projecting that deficits will total $7.6 trillion, $286 billion less than it projected in February. The biggest factor in the improvement is $165 billion less in projected spending on health insurance subsidies for policies sold through exchanges created by the Affordable Care Act. Those policies are proving less costly than CBO originally thought, mainly because of tighter management of treatment options.

The CBO is forecasting that the deficit will fall to $469 billion in 2015 before rising again and topping $1 trillion annually starting in 2023. The increases will be driven by spending on the government’s major benefit programs, including Social Security and Medicare, as baby boomers retire.

Republicans have accused Obama of failing to propose significant cost-cutting measures to reduce soaring entitlement costs. Democrats counter that Republicans would rather impose sharp cuts on needed government programs than impose higher taxes on the wealthy.

Neither side is expected to make major concessions in this congressional election year. But the budget wars of the past three years have subsided at least for a brief time. An agreement was reached in December on the broad outlines for spending over the next two years. The agreement will allow Washington to avoid the gridlock that culminated in October’s 16-day partial shutdown of the government.

The budget cease-fire also includes legislation that will suspend the government’s borrowing limit through March 15 of next year. That puts off another battle over raising the debt ceiling until a new Congress takes office in January.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | 2 comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • DanielJune 12, 2014 - 8:41 am

    Obama is spending like crazy this even after taking in record revenue.

    Reply | Report abusive comment
  • patrickJune 12, 2014 - 2:00 pm

    At the end of FY 2014 the total government debt in the United States, including federal, state, and local, is expected to be $21.0 trillion. YOU HAVEN'T SEEN ANYTHING YET DANIEL.

    Reply | Report abusive comment
.

Solano News

Vacaville eyes ban on medical marijuana grows

By Ryan McCarthy | From Page: A1

 
County action speeds Solano fairgrounds plan to next phase

By Kevin W. Green | From Page: A1 | Gallery

Paint the Town Purple; and Roxie

By Tony Wade | From Page: A2

 
Farmers markets herald return of summer

By Susan Hiland | From Page: A3

 
City Coach hosts first block party

By Susan Hiland | From Page: A3

Bid Corderos Park, city staff recommends

By Ryan McCarthy | From Page: A3

 
White minister fought for civil rights in the south

By Amy Maginnis-Honey | From Page: A3 | Gallery

Denim and Diamonds fundraiser set May 16

By Amy Maginnis-Honey | From Page: A4

 
Crash claims life of Concord teen

By Amy Maginnis-Honey | From Page: A4

Biz Buzz: Committee schedules contractors breakfast

By Kevin W. Green | From Page: B7

 
Biz Buzz: Budweiser kicks off new parks campaign

By Susan Hiland | From Page: B7

Biz Buzz: Dutch Bros. plans ALS fundraiser

By Susan Hiland | From Page: B7

 
Biz Buzz: Company schedules pasta class

By Susan Hiland | From Page: B7

 
Biz Buzz: NorthBay offers extended hours for primary care

By Kevin W. Green | From Page: B7 | Gallery

 
Biz Buzz: Retail store helps those with autism

By Susan Hiland | From Page: B7

.

US / World

Picture it: A 1,000-year exposure showing a changing Earth

By The Associated Press | From Page: A1

 
Quake agony revealed quietly on trip from Nepal airport

By The Associated Press | From Page: A5

 
Corinthian Colleges to shut down all 28 remaining campuses

By The Associated Press | From Page: A5

No time to lose: Global response to Nepal quake gears up

By The Associated Press | From Page: A5

 
Japan’s prime minister goes to US to showcase close ties

By The Associated Press | From Page: A5

Israel says airstrike on Syrian border targeted militants

By The Associated Press | From Page: A5

 
Family, friends in Baltimore mourn death of arrested man

By The Associated Press | From Page: A5

‘Batman’ killer studied brain disorders before mass murder

By The Associated Press | From Page: A5

 
Image from the quake: Heavy damage in Nepal ancient city

By The Associated Press | From Page: A5

Fighting rages in Yemen’s 3rd-largest city, strikes continue

By The Associated Press | From Page: A5

 
Mountaineers, guides stream from Everest after avalanche

By The Associated Press | From Page: A5

Putin accuses US of supporting separatists in Russia

By The Associated Press | From Page: A5

 
Death toll in Nepal quake rises to more than 3,200

By The Associated Press | From Page: A5

Late spring complicates already perilous amphibian migration

By The Associated Press | From Page: A5

 
.

Living

Community Calendar: April 27, 2015

By Susan Hiland | From Page: A2

 
Today in history: Monday, April 27, 2015

By The Associated Press | From Page: A2

Horoscope: April 28, 2015

By Holiday Mathis | From Page: B5

 
Parenting: How to set boundaries on screen time

By The Washington Post | From Page: B5

Horoscope: April 27, 2015

By Holiday Mathis | From Page: A7

 
My husband doesn’t want me to redecorate home he had with first wife

By Kathy Mitchell and Marcy Sugar | From Page: A7

.

Entertainment

TVGrid April 27

By Daily Republic Syndicated Content | From Page: B6

 
TVGrid April 28

By Daily Republic Syndicated Content | From Page: B7

.

Sports

Warriors confident after sweep of Pelicans

By The Associated Press | From Page: B1

 
Giants-Rockies game postponed by rain

By The Associated Press | From Page: B1

 
American Pharoah completes final pre-Kentucky Derby workout

By The Associated Press | From Page: B2

Newgarden claims first IndyCar Series win not far from home

By The Associated Press | From Page: B2

 
Justin Rose wins in New Orleans for 7th PGA Tour title

By The Associated Press | From Page: B2

Wall, Beal lead Wiz past Raptors 125-94 in Game 4 for sweep

By The Associated Press | From Page: B2

 
Paul, Clippers even series with 114-105 win over Spurs

By The Associated Press | From Page: B2

 
Ko wins Swinging Skirts for 2nd straight year

By The Associated Press | From Page: B2

Motorcycle rider from Livermore killed in Nevada race

By The Associated Press | From Page: B2

 
Billy Andrade and Joe Durant win Legends of Golf

By The Associated Press | From Page: B2

Cavs sweep Celts as James scores 27 in 101-93 victory

By The Associated Press | From Page: B2

 
It’s here: Fight week begins with Pacquiao caravan to Vegas

By The Associated Press | From Page: B2

.

Business

.

Obituaries

Elizabeth Cepeda

By Nancy Green | From Page: A4, 1 Comment

 
Kirk Noonan

By Nancy Green | From Page: A4, 1 Comment

Sandra King

By Nancy Green | From Page: A4

 
Janis Ruth (Sefzik) Skinner

By Nancy Green | From Page: A4

.

Comics

Baby Blues April 28

By Daily Republic Syndicated Content | From Page: B4

 
Zits April 28

By Daily Republic Syndicated Content | From Page: B4

Pickles April 28

By Daily Republic Syndicated Content | From Page: B4

 
Rose is Rose April 28

By Daily Republic Syndicated Content | From Page: B4

Get Fuzzy April 28

By Daily Republic Syndicated Content | From Page: B4

 
Dilbert April 28

By Daily Republic Syndicated Content | From Page: B4

B.C. April 28

By Daily Republic Syndicated Content | From Page: B4

 
Blondie April 28

By Daily Republic Syndicated Content | From Page: B4

Frank and Ernest April 28

By Daily Republic Syndicated Content | From Page: B4

 
Wizard of Id April 28

By Daily Republic Syndicated Content | From Page: B4

Peanuts April 28

By Daily Republic Syndicated Content | From Page: B4

 
Baldo April 28

By Daily Republic Syndicated Content | From Page: B4

Garfield April 28

By Daily Republic Syndicated Content | From Page: B4

 
Beetle Bailey April 28

By Daily Republic Syndicated Content | From Page: B4

For Better or Worse April 28

By Daily Republic Syndicated Content | From Page: B4

 
Sally Forth April 28

By Daily Republic Syndicated Content | From Page: B4

Bridge April 28

By Daily Republic Syndicated Content | From Page: B5

 
Cryptoquote April 28

By Daily Republic Syndicated Content | From Page: B5

Word Sleuth April 28

By Daily Republic Syndicated Content | From Page: B5

 
Crossword April 28

By Daily Republic Syndicated Content | From Page: B5

Sudoku April 28

By Daily Republic Syndicated Content | From Page: B5

 
Sally Forth April 27

By Daily Republic Syndicated Content | From Page: A6

B.C. April 27

By Daily Republic Syndicated Content | From Page: A6

 
Garfield April 27

By Daily Republic Syndicated Content | From Page: A6

Beetle Bailey April 27

By Daily Republic Syndicated Content | From Page: A6

 
Blondie April 27

By Daily Republic Syndicated Content | From Page: A6

Get Fuzzy April 27

By Daily Republic Syndicated Content | From Page: A6

 
Pickles April 27

By Daily Republic Syndicated Content | From Page: A6

Wizard of Id April 27

By Daily Republic Syndicated Content | From Page: A6

 
Baldo April 27

By Daily Republic Syndicated Content | From Page: A6

Rose is Rose April 27

By Daily Republic Syndicated Content | From Page: A6

 
For Better or Worse April 27

By Daily Republic Syndicated Content | From Page: A6

Zits April 27

By Daily Republic Syndicated Content | From Page: A6

 
Frank and Ernest April 27

By Daily Republic Syndicated Content | From Page: A6

Peanuts April 27

By Daily Republic Syndicated Content | From Page: A6

 
Dilbert April 27

By Daily Republic Syndicated Content | From Page: A6

Baby Blues April 27

By Daily Republic Syndicated Content | From Page: A6

 
Cryptoquote April 27

By Daily Republic Syndicated Content | From Page: A7

Word Sleuth April 27

By Daily Republic Syndicated Content | From Page: A7

 
Sudoku April 27

By Daily Republic Syndicated Content | From Page: A7

Bridge April 27

By Daily Republic Syndicated Content | From Page: A7

 
Crossword April 27

By Daily Republic Syndicated Content | From Page: A7