Wow. The U.S. budget deficit fell by 9%

Regular readers of this blog know that in the last fiscal year, the federal budget deficit fell, as spending declined and revenues increased.

Lately those who’ve incorrectly claimed that spending has surged tend to be people who have long opposed the programs most Americans strongly like and want funded.

Now there’s more evidence that America’s fiscal house continues to improve.

According to the Wall Street Journal’s MarketWatch:

The U.S. government ran a budget deficit of $260 million in December, the Treasury Department reported Friday, bringing the total shortfall for the first quarter of fiscal 2013 to $292 billion. Receipts in December were $269.5 billion, while the government spent $269.7 billion in the month. Year to date, the deficit is 9% lower than in the first three months of the prior fiscal year. The U.S. government’s fiscal year runs from October to September.

Figures like these reflect a healing economy with lower unemployment. As long as Congress doesn’t do something daft like refuse to raise the debt ceiling or pursue big austerity-oriented cuts, a recovering economy will lead to more drops in the budget deficit.

More could to be done to stabilize our deficit to GDP ratio, but news like this shows claims of near-term fiscal catastrophe are far overblown.

Amy Fried

About Amy Fried

Amy Fried loves Maine's sense of community and the wonderful mix of culture and outdoor recreation. She loves politics in three ways: as an analytical political scientist, a devoted political junkie and a citizen who believes politics matters for people's lives. Fried is Professor of Political Science at the University of Maine. Her views do not reflect those of her employer or any group to which she belongs.