The Morning Economic Report
9:30 am
Fri August 29, 2014

Budget Surplus - 8/29/14

The U.S. Treasury Department booked a $114 billion surplus in April, the largest surplus registered for that month since 2008 according to the most recent estimates from the Congressional Budget Office.  For the first seven months of the current federal fiscal year, which began last October 1st, the CBO estimates that the nation’s total budget deficit equaled $301 billion, which is $187 billion less than it was for the same period last year. 

As reported by CNNmoney, federal coffers experienced a 7 percent increase in individual income and payroll tax receipts and a 15 percent increase in corporate income tax receipts.  Meanwhile, overall federal spending fell by 2 percent, which helps to explain the recent lackluster performance of several states that depend heavily upon federal outlays, including Maryland, Virginia and New Mexico. 

Categories associated with the largest declines in federal spending included unemployment benefits and homeland security, both down 31 percent, agriculture, down 12 percent and defense spending, down 5 percent.  Partially offsetting these federal spending declines were increased spending on Social Security, 5 percent, and Medicaid, up 9 percent.