October 2012, Another $100+ Billion Government Budget Deficit

November 13, 2012 by Jon C. Ogg

The federal budget deficit widened out nominally in October and was wider than expectations for the first month of the government’s fiscal year. A monthly report from the Treasury Department showed that October’s deficit was $120 billion. This deficit was “only” about $98.5 billion in October of 2011. Bloomberg and Dow Jones both had consensus estimates of $113 billion or so for the month.

Spending rose to $304.31 billion versus $261.54 billion a year ago, with income from individuals coming in at $102.04 billion versus $86.75 billion a year ago. Corporate income tax was down to $1.62 billion from $2.47 billion a year ago.

On an annualized basis the fiscal 2012 deficit was over $1 trillion for the fourth year in a row. With the first month at such a wide deficit, the only thing which may prevent the budget from remaining above $1 trillion in 2013 is the coming Fiscal Cliff. As of the latest projection, the White House came up with a budget deficit about $990 billion for 2013.

JON C. OGG

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