Obama records first budget surplus of $58 billion in April, breaking a streak of deficits inherited from Bush dating back to SEP 2008

[웃 910]

U.S. to run first surplus since 2008: CBO

Surplus is first of Obama's presidency

The U.S. government recorded a budget surplus of $58 billion in April, the Congressional Budget Office estimated on Monday, breaking a streak of deficits that began in 2008.

The surplus — the first of Barack Obama's presidency — was the result of both increased tax collection and lower government spending. Before April, the government had not run a surplus since September 2008, the month that the financial crisis struck the U.S. economy.Read CBO report.

The CBO's estimate is released before the Treasury Department's monthly budget report. That report is scheduled for later this week.

CBO estimated that receipts were $30 billion higher in April than the same month a year ago, due to declining refunds that month and higher corporate income tax receipts. Spending fell by $69 billion compared to April 2011, marked by lower outlays on defense, Medicaid and the Postal Service.

Government spending and deficits are shaping up to be a main issue in the presidential campaign, and the monthly surplus is a piece of good news for Obama. Read more about Election 2012.

For the first seven months of the fiscal year, the CBO estimates that the Treasury will notch a deficit of $721 billion. That's $149 billion less than the red ink reported for the same period in fiscal 2011.

The improved budget picture will not put an end to election-year sparring about the deficit, however. The U.S. is running a debt of $15.7 trillion, a number often pointed out by Obama's Republican critics, including White House hopeful Mitt Romney. Read more about U.S. national debt.

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Edited May 8, 2012 by ☠

[Obama 2012 1,714]

It's an election year. People spend money and in turn tax revenue goes up. This is nothing new. Obama didn't create any 'magic' here.

[mawilson 2,133]

Budget surplus? Is this from The Onion?

[mawilson 2,133]

"The federal government incurred a budget deficit of $721 billion in the first seven months of fiscal year 2012, CBO estimates"

How do you get a "surplus" from that, other than through clever accounting?

[mawilson 2,133]

It's an election year. People spend money and in turn tax revenue goes up. This is nothing new. Obama didn't create any 'magic' here.

He sure did. A trillion dollar deficit advertised as a "surplus" (in one month) takes some serious accounting magic.

[Mr. Big Dog 10,747]

Budget surplus? Is this from The Onion?

[Mr. Big Dog 10,747]

"The federal government incurred a budget deficit of $721 billion in the first seven months of fiscal year 2012, CBO estimates"

How do you get a "surplus" from that, other than through clever accounting?

All the CBO is saying is that the feds collected $58BN more in April than they spent in April. So, at the end of March, the running 2012 deficit would have been $779BN and at the end of April where $58BN more dollars were collected than spent, it's $721BN.

[mawilson 2,133]

All the CBO is saying is that the feds collected $58BN more in April than they spent in April. So, at the end of March, the running 2012 deficit would have been $779BN and at the end of April where $58BN more dollars were collected than spent, it's $721BN.

I know - they're going to have to spend double the next month to make up for it.

[웃 910]

He sure did. A trillion dollar deficit advertised as a "surplus" (in one month) takes some serious accounting magic.

We've lost money every month for the past 42 months. Last month we made money. This is a combination of good news and accounting magic.

[mawilson 2,133]

I hate politicians. So fuckin' dishonest.

You know some poor slob is going to buy it and think "yay Obama! fixed the deficit!"

[Mr. Big Dog 10,747]

I know - they're going to have to spend double the next month to make up for it.

They will. That's one thing you do not have to worry about.

[웃 910]

The Republicans will bring us to a surplus with tax cuts.

[DaveE 178]

How can there be a budget surplus when there hasn't been a budget in three years?

Edited May 8, 2012 by DaveE

[웃 910]

How can there be a budget surplus when there hasn't been a budget in three years?

Using that logic this is great news. There hasn't been a budget deficit in three years.

[mawilson 2,133]

Using that logic this is great news. There hasn't been a budget deficit in three years.

That's exactly their logic.

Washington, D.C.--After proposing a $3.73 trillion budget that increases spending amid a record $1.65 trillion federal deficit, President Obama announced his plan to address the nation's unprecedented fiscal crisis by funding an "historic" $1.2 trillion federal public works project that will guarantee that "all citizens have a place to put their head in the sand."

"I play a lot of golf," said Obama, "but it's not just guys like me who should be able to bury their heads from reality in the bunker on the 18th hole. It's time head burying became an entitlement for all Americans."