Oct.-Dec. budget deficit narrows sharply: CBO
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[January 09, 2014]
WASHINGTON (Reuters) — The U.S.
government's budget deficit fell by more than a third in the first
three months of fiscal 2014 to $182 billion, including a $44 billion
surplus in December, the Congressional Budget Office estimated on
The cumulative budget gap for October, November and December was
$111 billion below the year-ago-period, continuing a trend of
shrinking deficits due to an improving economy and higher tax
Net revenues rose 7.7 percent, or $38 billion, in the
October-December period, mostly because of higher social insurance
taxes after a temporary reduction expired at the end of 2012, CBO
Outlays for the three-month period fell by 7 percent, or $62
billion, as military spending fell $11 billion, unemployment
benefits fell $4 billion and net interest on the public debt fell by
Government controlled mortgage finance groups Fannie Mae and Freddie
Mac also contributed $34 billion more to the Treasury than during
the year-ago period as their net worth improved.
The $44 billion December surplus compares with a $1 billion deficit
a year earlier, the CBO said, even though revenues in December 2012
benefited from stronger realization of income by wealthy individuals
hoping to avoid tax increases in January 2013.
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The U.S. Treasury Department is expected to report official budget
figures for December and the first three months of the 2014 fiscal
year on January 13.
(Reporting by David Lawder; editing by
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