Just two months into FY 2013, the government has racked up nearly $300 billion of red ink – nearly $5 billion per day of deficit spending – a virtual guarantee of the fifth consecutive year of deficit spending in excess of a trillion dollars. With the economy barely expanding, the federal government is spending 4 percent more than the FY 2012 level. Spending on the big three entitlement programs is up by more than 8 percent over just last year. Interest on the debt is up 5%.
Following is an excerpt from The Hill:
The federal budget deficit has reached $292 billion just two months into fiscal 2013, the Congressional Budget Office estimated Friday.
That is a fast start for a fiscal year that CBO already predicted will have a deficit of more than $1 trillion — the fifth year in a row that has happened, all under President Obama.
The deficit was $172 billion in November, CBO estimates.
For October and November, the deficit is $57 billion more than the deficit for the first two months of fiscal 2012. The fiscal year for the federal government begins in October.
A large portion of this results from the shifts in payments due to the timing of weekends. If not for timing, the deficit for this year is actually $8 billion lower.
Despite all the battles between President Obama and Congress over the last two years on the budget, spending is 4 percent higher — or $22 billion — this year compared to 2012, even with timing shifts taken into account.
Social Security is up 8 percent, Medicare by 8 percent and Medicaid by 9 percent. Interest payments are up 5 percent. Read more
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for September 1st, 2014 | John Ransom
In Other News: Mary Landrieu Connects with Millennials; Lists Parent’s Basement as Louisiana Address | Michael Schaus
In Other News: Warren Buffet's Secretary Unavailable for Comment on Burger King Tax Move | Michael Schaus