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The Shrinking Deficit

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From the WSJ: U.S. Annual Budget Deficit Remains Near 7-Year Low in June

The U.S. reported a billion surplus in June, a month in which the government in recent decades has typically generated a surplus on account of corporate and individual taxes collected at month’s end.

The monthly surplus brought the budget deficit over the past 12 months to 1 billion, down nearly 20% from a year earlier.

Meanwhile, Congress has yet to raise the federal debt limit. The Treasury has been using emergency measures since mid-March to avoid breaching the ceiling.

The Treasury hasn’t said how long it might be able to do that, but budget analysts have said the emergency measures could last until November or December.

The most recent CBO projection was for the fiscal 2015 budget deficit to be 2.7% of GDP. Right now it looks like fiscal 2015 will be closer to 2.4% (a significant change).
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