CBO estimates final FY2010 budget deficit at almost $1.3 trillion

///CBO estimates final FY2010 budget deficit at almost $1.3 trillion

CBO estimates final FY2010 budget deficit at almost $1.3 trillion

The Congressional Budget Office (CBO) estimates that the FY2010 federal budget deficit was almost $1.3 trillion; $125 billion lower than FY2009, but still the second highest deficit in U.S. history.  The decline resulted from a small decrease in government spending (-$67 billion) and slightly higher revenues (+$51 billion).  According to CBO, the small growth in FY2010 revenue was the first increase in two years as higher corporate income taxes and Federal Reserve receipts from banks overcame lower individual and payroll tax collections.  Individual income and payroll taxes withholdings declined sharply early in the year (from 2009 tax liabilities), but rebounded somewhat during the last five months.  CBO estimates that total federal outlays were lower than the previous year because of lower spending on support for programs to mitigate the financial crisis: 1) costs for the Troubled Asset Relief Program (TARP); 2) payments to Fannie Mae and Freddie Mac; and 3) and federal deposit insurance payments.  This lower spending was almost offset by increases for unemployment benefits (which grew by 34 percent), stimulus spending under the American Recovery and Reinvestment Act (ARRA), and moderately higher outlays for federal agencies’ spending.

By |2019-05-06T16:33:05+00:00October 15th, 2010|Defense Financial Highlights, News|0 Comments

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