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Monday, May 27, 2024
HomeNewsEconomyStarve The Beast – July Federal Budget Deficit Up From Year Prior

Starve The Beast – July Federal Budget Deficit Up From Year Prior

So much for balance. In a classic argument for starving the beast in Washington, the United States ran another budget deficit in July, although government revenues increased from a year earlier due to tax hikes and tepid economic growth, a report from the Treasury showed on Monday.

The U.S. government spent a solid $98 billion more than it took in last month, with the deficit driven by spending on the implementation of Obamacare healthcare programs, pensions for the elderly and the military.

The budget deficit shot slightly past expectations, as analysts polled by Reuters had expected deficit of $96 billion. The United States, historically, runs deficits in July as there are few tax deadlines during the month.

The country has run full-year budget deficits continuously since 2001, and the amount of red ink has grown immensely since 2009 when a surge in unemployment fueled higher spending on the compensatory social safety net.

But this year, the Democrats were touting substantial deficit reduction, although in July total spending rose to $298 billion from $254 billion in the same month of 2012.

Another factor that was supposed to lead to a lower deficit is the steam that appears to be gathering in the U.S. economy. That is also lifting tax receipts, which rose to $200 billion in July from $185 billion in July 2012.

So far in the current fiscal year, which began in October, the federal government has run $607 billion into the red, a narrowing from the $974 billion deficit chalked up in the same 10 months of fiscal year 2012.

Written by

Rich, the People's Pundit, is the Data Journalism Editor at PPD and Director of the PPD Election Projection Model. He is also the Director of Big Data Poll, and author of "Our Virtuous Republic: The Forgotten Clause in the American Social Contract."

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