ChesusRice
Well-Known Member
NEW YORK (CNNMoney)
[h=2]The federal government's latest annual deficit is the smallest it's been since 2008, according to Treasury Department data released Wednesday.[/h]At $680 billion, the fiscal 2013 deficit is 51% less than it was in 2009, when it hit a record high nominally of $1.4 trillion.
As a percent of the economy, it's also considerably smaller than it's been in
the past five years, coming in at 4.1% of gross domestic product. By contrast,
the annual deficit in 2009 topped 10% of GDP. And last year it was 6.8%.
Overall, Treasury said higher receipts accounted for 79% of the decline in
the deficit from last year.
Related: Washington's budget fiasco
Several factors have contributed to the strong
improvement in the nation's near-term fiscal picture. They include an improving
economy and a mix of fiscal restraint -- primarily, the expiration of stimulus
measures, the imposition of across-the-board
budget cuts known as the sequester, and tax
increases on high-income households during the 2013 fiscal year, which ended
September 30.
Another boon was the fact that Fannie
Mae (FNMA,
Fortune
500) and Freddie Mac (FMCC,
Fortune
500) paid back a
large part of the $187 billion federal bailout the mortgage giants received,
starting in 2008, to help them weather the housing crisis.
In addition, total interest payments -- $415.6 billion -- were moderate
relative to the amount of outstanding debt and GDP, but were nearly 16% higher
than in 2012.
Overall, spending in 2013 totaled 20.8% of GDP, down from 22% the year
before, thanks in part to declines in defense spending and unemployment
benefits, as well as the sequester. Among the areas where annual spending rose
were Social Security and Medicare.
[h=2]The federal government's latest annual deficit is the smallest it's been since 2008, according to Treasury Department data released Wednesday.[/h]At $680 billion, the fiscal 2013 deficit is 51% less than it was in 2009, when it hit a record high nominally of $1.4 trillion.
As a percent of the economy, it's also considerably smaller than it's been in
the past five years, coming in at 4.1% of gross domestic product. By contrast,
the annual deficit in 2009 topped 10% of GDP. And last year it was 6.8%.
Overall, Treasury said higher receipts accounted for 79% of the decline in
the deficit from last year.
Related: Washington's budget fiasco
Several factors have contributed to the strong
improvement in the nation's near-term fiscal picture. They include an improving
economy and a mix of fiscal restraint -- primarily, the expiration of stimulus
measures, the imposition of across-the-board
budget cuts known as the sequester, and tax
increases on high-income households during the 2013 fiscal year, which ended
September 30.
Another boon was the fact that Fannie
Mae (FNMA,
Fortune
500) and Freddie Mac (FMCC,
Fortune
500) paid back a
large part of the $187 billion federal bailout the mortgage giants received,
starting in 2008, to help them weather the housing crisis.
In addition, total interest payments -- $415.6 billion -- were moderate
relative to the amount of outstanding debt and GDP, but were nearly 16% higher
than in 2012.
Overall, spending in 2013 totaled 20.8% of GDP, down from 22% the year
before, thanks in part to declines in defense spending and unemployment
benefits, as well as the sequester. Among the areas where annual spending rose
were Social Security and Medicare.
was lower than any of Obama's 5 year deficit to date.
