August 13, 2015
WHAT SHALL WE DO WITH THE SURPLUS?:
Spending Battle Looms Even as Deficit Shrinks (NICK TIMIRAOS, Aug. 12, 2015, WSJ)
The Congressional Budget Office last week slashed its deficit forecast for the fiscal year ending Sept. 30 by more than 12%. It now expects the U.S. will run a deficit of $425 billion, the lowest since 2007 in both nominal terms and as a share of the economy. [...]The budget outlook has improved this year due to economic growth boosting revenue. Revenue for the 12-month period ended July is nearly 9% higher than the year-earlier level, while spending is up 6%.Since the start of the fiscal year last October, the deficit reached $428 billion in July after adjusting for calendar differences, down from $460 billion for the same period through July 2014.
The situation will only get worse as the Peace Dividend kicks in.
Posted by Orrin Judd at August 13, 2015 8:50 PM
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