Deficit: Surplus in Dec., but not now
WASHINGTON (AP) - January 11, 2008 The Treasury Department reported Friday that the budget was in
surplus by $48.3 billion last month, reflecting the fact that
December is a month when quarterly income tax payments are made to
the government. It was the largest surplus for any December on
record.
For the first three months of the budget year, which began on
Oct. 1, the deficit totals $105.5 billion, however. That was up
31.3 percent from the same period a year ago.
So far this budget year, revenues are up by 5.7 percent to
$606.2 billion. But spending is rising at a faster pace, increasing
by 8.8 percent over the same period in the 2007 budget year, to
$653.9 billion.
The rise in spending reflects sharp increases in defense
spending and in government health care spending.
The Congressional Budget Office and the Bush administration will
in coming weeks provide updated estimates for the deficit for the
current 2008 budget year, which runs through next Sept. 30.
The administraton's new forecast will be a part of the 2009
budget it will send Congress on Feb. 4. Last summer, the
administration estimated that the 2008 deficit would be about $50
billion higher than the 2007 imbalance of $162.8 billion, which was
a five-year low.
The Bush administration says its policies, if followed by the
next administration, will return the budget to surplus in 2012. But
many private economists are predicting the deficits will start
rising in coming years, reflecting the on-going costs of war
spending and higher costs for big government benefit programs such
as Social Security and Medicare as 78 million baby boomers reach
retirement age.
The deficit for this year could also be increased if the
administration decides to urge Congress to approve an economic
stimulus package to combat the weakening economy. Democrats who
control both the House and the Senate are looking at their own
stimulus package that could include such items as temporary tax
rebates for individuals, extending unemployment benefits and
boosting food stamp payments.
Bush is expected to make a decision on whether to push for a
stimulus package around the time of his Jan. 28 State of the Union
address.