US budget deficit for 2015 lowest in 8 years

[finehoe]

The Treasury Department said Thursday that the deficit in the just-completed 2015 budget year fell to $439 billion from $483 billion in 2014. It is equal to 2.5 percent of the economy, the smallest proportion since 2007, and below the average of the past 40 years.

The latest figures coincide with intensifying budget battles in Washington. Congress and the White House face an early November deadline to raise the nation's borrowing limit. Lawmakers are seeking a separate agreement with the Obama administration on a budget to keep the government open past a Dec. 11 deadline.

The past few years' dwindling budget gaps are a sharp contrast to the ballooning deficits that emerged during the Great Recession. Government spending surged and tax revenue sank as 9 million Americans lost jobs, the number of people relying on unemployment benefits and other social programs soared and banks and automakers needed bailouts.

Those trends raised annual deficits above $1 trillion for the first four years of Obama's presidency. In 2009, the deficit equaled nearly 10 percent of the economy, the largest proportion since World War II.

Since then, a slowly improving economy and annual spending caps agreed to in a 2011 budget deal have steadily reduced the deficit. It has declined for six straight years when measured as a percentage of the economy.

http://bigstory.ap.org/article/6d2016e016ea42449929e29b4a8b6cb6/us-budget-gap-2015-439-billion-lowest-8-years

[spuwho]

It doesnt include how much the Feds have borrowed against Social Security.

We keep issuing Treasury bonds to the SS fund and then use the dough for ongoing stuff.

Until we stop the internal borrowing, the issue remains the same. Spending more than we take in.

[finehoe]

It doesnt include how much the Feds have borrowed against Social Security.

We keep issuing Treasury bonds to the SS fund and then use the dough for ongoing stuff.

Until we stop the internal borrowing, the issue remains the same. Spending more than we take in.

You are confusing the debt with the deficit.  This is all revenue vs all spending for fiscal year 2015.

"Government receipts totaled $3,249 billion in FY 2015. This was $228 billion higher than in FY 2014, an increase of 8 percent. As a percentage of GDP, receipts equaled 18.3 percent, 0.7 percentage points higher than in FY 2014. The increase in receipts from FY 2014 can be attributed to a stronger economy. Growth in wages and salaries made collections of individual and payroll taxes strong throughout the year. Corporation income tax collections also increased in FY 2015 due to growth in taxable profits.

Outlays for FY 2015 were $3,688 billion, $184 billion above those in FY 2014, a 5 percent increase. As a percentage of GDP, outlays were 20.7 percent, 0.4 percentage points higher than in the prior year. Contributing to the dollar increase over FY 2014 was higher spending for Social Security, Medicare, and Medicaid."

http://www.treasury.gov/press-center/press-releases/Pages/jl0213.aspx

[spuwho]

Debt servicing is an expense, less debt, less deficit spending.

Having revenue outgrow expenses is a good thing. Just need more work on the expense side.

[JeffreyS]

So keep up what we've been doing.