CBO says fiscal year federal deficit climbs to $1 trillion  

[Monthly Budget Review]

The federal government ran a deficit of $1 trillion for the first nine months of fiscal year 2010, according to the latest estimates from the Congressional Budget Office (CBO) that were published on July 7.  This was $81 billion less than the deficit recorded during the same period in FY 2009. Revenues during this period were up by $8 billion while outlays declined by $73 billion. Receipts in June were an estimated $36 billion above the amount recorded in June 2009, with net receipts from corporate income taxes up by $19 billion (or about 60 %). Over the nine-month period, receipts from corporate income taxes were $31 billion (or 31%) higher than in FY 2009, CBO said. “That increase reflects higher taxable profits in 2010, resulting both from improved economic conditions and from lower depreciation charges,” the budget review said. “The increase in corporate payments in June could indicate that the September quarterly payments also will show strength because corporate receipts in those two months tend to move in tandem,” CBO added.

The budget review is available at http://www.cbo.gov/ftpdocs/115xx/doc11526/JuneMBRJuly7.pdf.