The new federal fiscal year began with some positive news or at least less bad news. Uncle Sam had a smaller October deficit than a year ago according to a Monday estimate by the Congressional Budget Office.
The $167 trillion shortfall in CBO projects for October is $117 million less than the deficit of October .
CBO said revenue rose 20% while spending was 70% less. In spite of the crisis for programs such as emergency unemployment insurance, the government was still squeezing cash. These costs have dissipated in this year.
This data is the first of the fiscal year 2022, that began in Oct. 1.
The government finished fiscal year 2021 at $2.8 trillion, the second-largest in history. The record was set by 2020, with $3.1 trillion.
The government’s debt to gross domestic product, which is a key indicator of its long-term fiscal burden fell last year and was below 100% GDP. CBO analysts stated that even though Washington had a large deficit, the GDP growth rate was even greater.
The final 2021 deficit was also $231 trillion lower than CBO’s July prediction. Analysts said this was due to higher taxes.
Indeed saw record revenue rise to $4 trillion. This is an increase of $3.5 trillion in 2019, and $3.4 trillion for 2020..
The problem is that government spending has surpassed $6.8 trillion. This leaves a huge hole in the budget.
CBO estimates are projections based on daily Treasury Department statements. The official numbers will be released by Treasury later in the month.