–Sees FYTD Deficit Of -$1.17 Trln Vs -$1.23 Trln A Year Ago

WASHINGTON (MNI) – The following are excerpts from the
Congressional Budget Office’s Monthly Budget Review published Monday:

CBO estimates that the Treasury Department will report a deficit of
$1.17 trillion for the first 11 months of fiscal year 2012, almost $70
billion less than the deficit at the same point last year. Through the
end of August, revenues in fiscal year 2012 were about 6 percent higher
and outlays about 2 percent higher than they were through August of last
year. In CBO’s most recent budget projections, the agency estimated that
the deficit for fiscal year 2012 (which will end on September 30, 2012)
will total $1.13 trillion, about $175 billion less than last year’s
shortfall.

The Treasury reported a deficit of $70 billion for July, $1 billion
less than the amount CBO had projected on the basis of the Daily
Treasury Statements.

The deficit in August was $192 billion, CBO estimates, $58 billion
more than the deficit recorded a year ago. That outcome, however, was
affected by the fact that the Labor Day weekend came right at the
beginning of September. Consequently, certain payments that are
ordinarily made at the beginning of each month including Social
Security benefitswere shifted from September to August, boosting
spending last month. Without those timing shifts, the deficit this
August would have been about the same as the shortfall in August 2011.

In the absence of those payment shifts, outlays would have been
about $10 billion (or 3 percent) more than the amount recorded in August
of last year, CBO estimates. Much of that increase resulted from a
change in the projected subsidy costs for housing loans and loan
guarantees that had been made in previous years, which boosted outlays
by $9 billion. Excluding the effects of the payment shifts, Social
Security benefits paid in August were $4 billion higher than the amounts
paid last August. Also, outlays for veterans’ programs were $3 billion
higher. In contrast, spending was lower for unemployment benefits (by $3
billion), as well as for defense, net interest on the public debt, and
international assistance (each by $1 billion).

Receipts in August were $10 billion (or 6 percent) higher than
those in August 2011, CBO estimates. Net receipts from individual income
taxes and payroll taxes, which account for more than 80 percent of total
federal revenues, rose by $1 billion (or 1 percent). Withholding of
individual income and payroll taxes rose by $3 billion (or 2 percent),
whereas collections of payroll taxes for unemployment insurance declined
by $2 billion. In addition, corporate income taxes and receipts from the
Federal Reserve each rose by $3 billion. Together, receipts from excise
taxes and from estate and gift taxes also increased by $3 billion.

In CBO’s estimation, the deficit through August for fiscal year
2012 was $1,166 billion, $68 billion less than the deficit recorded for
the same period last year. Revenues have increased by $126 billion, and
outlays have risen by $57 billion.

** MNI Washington Bureau: 202-371-2121 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$,M$$CR$]