April was best month in history for U.S. Budget, CBO figures show
Texas Insider Report: WASHINGTON, D.C. — With a surging American economy driving Federal Tax Receipts up 13% compared to a year ago, the news couldn’t come at a better time for President Trump and Congressional Republicans. According to a recent Congressional Budget Office (CBO) announcement, the U.S. Government just had its biggest-ever Monthly Budget Surplus in April.
CBO analysts were surprised by the surplus, which was some $40 billion more than they’d predicted less than a month ago, because this year’s increase was particularly strong.
A surging economy put more money into Americans’ paychecks — and leads to more payments to Uncle Sam. As a result, after collecting $515 billion and spending $297 billion, the nation’s total monthly surplus of $218 billion swamped the previous monthly record of $190 billion set in 2001.
While analysts said they’ll have a better idea of what’s behind the surge as more information rolls in, for now they believe individual taxpayers are paying more because they have higher incomes.
“Those payments were mostly related to economic activity in 2017, and may reflect stronger-than-expected income growth in that year,” the Congressional Budget Office analysts said in their Monthly Budget Review.
“Part of the strength in receipts also may reflect larger-than-anticipated payments for economic activity in 2018.”
Treasury Department officials will release their final numbers in a few days, but the CBO is usually accurate to within a couple billion dollars.
Higher inflation is driving the federal government’s overall debt payments up, while Homeland Security Disaster Relief, Social Security Benefit Payments, and the Defense Department have also lead to significant spending increases.
For the seven months of Fiscal Year 2018, chiefly because spending has increased 5% so far this year, the government is running a $382 billion deficit, $37 billion more than last year’s figures during the same period.
Source: Texas Politics