June Federal Budget

The U.S. Treasury announced it federal budget deficit for June.  For the second month in a row, it was less than expected.  The government only spent $65,800,000,000 more than it took in. This compares favorably against last June when the deficit figure was $94.3 billion.  In more good news, the year-to-date number improved as well.  We have only spent $1,004,000,000,000 more than we have collected in taxes so far. That is about $82 billion less than this time last year or a 7.6% improvement.  Fiscal year-to-date, the tax receipt growth was up about 0.54%.  Most of the “savings” has come from the government outlays as we have spent 2.76% less than at this point in 2009, although the government did spend 3.2% more in June 2010 than it did June a year earlier.  While it is not a large enough improvement to move our indicator, it is a step in the right direction and as Lao-Tzu said, “A journey of a thousand miles must begin with a single step.”  Since it is an election year, perhaps the trend will gain traction, but the trek back to solvency seems straight up and over very rough terrain.