Budget Deficit

Summary

The U.S. recorded a budget deficit of $248 billion in the fiscal year ended September 30, $48 billion less than the government predicted in August and the narrowest spending gap since 2002. Revenue increased 12 percent from the previous fiscal year, led by a 27 percent gain in corporate income taxes. Spending rose 7.4 percent to a record $2.65 trillion. George W. Bush is delivering two years early on his promise to cut the deficit below 2 percent of gross domestic product, down from 3.6 percent in 2004. In February the Bush administration predicted a fiscal 2006 deficit of $423 billion, and then slashed the estimate to $296 billion in August amid record tax revenue. The Treasury on Sept 15 took in an unprecedented $85.8 billion in taxes, including a one-day record $71.8 billion in corporate taxes. Bush credited the “strong and growing” economy as helping to reduce the federal deficit.

Reaction

When I read this article it surprised me. I was surprised by the article itself, but also that news like this hasn’t received more discussion. A shortfall of 2 percent of GDP is what I would consider front page news. A narrowing of more than 1 Ѕ