Congressional Budget Office: Budget Deficit Drops To $435B

5a09d39145e0d426b84ffc14ac633754

WASHINGTON -- Congressional budget analysts said Wednesday that the federal government ran a deficit of $435 billion in the just-completed budget year, the smallest deficit since 2007 and well below the record shortfalls of President Barack Obama's first term.

The Congressional Budget Office report says it's the sixth consecutive drop in a row for the deficit, when measured against the size of the economy, since the $1.4 trillion deficit of Obama's first term.

The improved deficit figures come as Washington is grappling with the need to increase the government's borrowing cap in early November. The White House and lawmakers on Capitol Hill are also seeking a separate agreement on a budget to keep the government open past a Dec. 11 deadline.

During Obama's first term, the deficit was greater than $1 trillion for four years in a row in the wake of the Wall Street bailout, a huge stock market drop and a major recession.

The budget office does nonpartisan analysis for Congress; the official government estimate from the White House budget office and Treasury Department typically is released in mid-October.

The stronger figures represent 8 percent growth in tax revenues, led by 10 percent growth in individual income taxes. Spending grew more slowly, though the cost of health insurance subsidies through exchanges established by the Affordable Care Act almost doubled, to $27 billion.

Two attempts by Obama and House Speaker John Boehner, R-Ohio, to negotiate a sweeping deficit-cutting package ended in failure after Boehner pulled out of the talks. Now, Obama is refusing to offer concessions in exchange for increasing the government's $18.1 trillion borrowing cap. Talks on a spending package that would ease cuts to agency budgets and replace them with savings elsewhere in the budget have just started.

ANDREW TAYLOR - Oct 7, 5:56 PM EDTAP

 
 

News Sources

  • ABC
  • Access Hollywood
  • Associated Press
  • BBC
  • Bloomberg
  • Boston Globe
  • C-SPAN
  • CBS
  • Chicago Sun-Times
  • Christian Science Monitor
  • Center for Public Integrity
  • CNN
  • Congressional Quarterly
  • Democracy Now!
  • Digg
  • E! Online
  • Entertainment Weekly
  • Financial Times
  • Forbes
  • Foreign Policy
  • Fortune
  • Front Street Magazine

  • U.S. News, World News
  • Business, Politics
  • Entertainment, Sports
  • Art, Lifestyle
  • Videos And More
  • News Sources

  • Fox News
  • Google News
  • Guardian
  • Huffington Post
  • Independent
  • LA Weekly
  • Los Angeles Times
  • McClatchy
  • Mother Jones
  • National Journal
  • NBC New
  • New York Post
  • New York Times
  • Newsweek
  • Newsy
  • NPR
  • PBS NewsHour
  • People
  • Politico
  • Reuters
  • TPM
  • Washington Post
  • Thanks For Your Support!

    Advertisement
     

    Copyright © 2018 Front Street. All Rights Reserved.