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Monday, October 24th, 2022

Federal deficit was cut in half last year, Treasury Department says

Author:     Courtenay Brown
Source:     Axios
Publication Date:     Oct 21, 2022
 Link: Federal deficit was cut in half last year, Treasury Department says
Stephan:   This is a big deal getting almost no media attention. I think the Democrats are doing a very poor job getting across to people the many wellbeing fostering policies they have gotten into place over the past two years.
President Biden Credit: Shawn Thew / EPA / Bloomberg / Getty

New numbers from the Treasury on Friday give the Biden administration something to brag about, for now: The federal budget shortfall was chopped in half in the last fiscal year (which ended last month), falling to $1.38 trillion.

Driving the news: Federal outlays were $6.3 trillion, down more than 8% from the previous year. That drop largely reflects the end of COVID-related government programs, like topped-up unemployment benefits.

  • The cost of Biden’s student loan forgiveness program, however, caused the deficit for the month of September alone to spike to $430 billion, up from $65 billion in September 2021.

Meanwhile, government revenues rose by $850 billion to $4.9 trillion. That rise is due, in part, to higher individual income taxes on the back of a strong labor market and strong wage gains for workers.

What they’re saying: In a statement, Treasury Secretary Janet Yellen said the figures demonstrate President Biden’s “commitment to strengthening our nation’s fiscal health.”

The intrigue: The fiscal road ahead looks more troubling. For one, the economy is cooling down, and many […]

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