Government Runs $344 Billion Deficit

[The Kernel]

WASHINGTON - The government ran a deficit of $344.3 billion in the first eight months of the 2004 budget year, according to the latest snapshot of the nation's balance sheets.

The data released by the Treasury Department (news - web sites) on Thursday showed more red ink than the $290.9 billion shortfall for the corresponding period last year.

For the current budget year, which began Oct. 1, spending has totaled $1.53 trillion, 5.5 percent more than the same period a year ago. Revenues came to $1.19 trillion, 2.3 percent more than the previous year.

So far this year, the biggest spending categories are programs from the Health and Human Services (news - web sites) Department, including Medicare and Medicaid, $356.7 billion; Social Security (news - web sites), nearly $349 billion; military, $285.2 billion; and interest on the public debt, $190.5 billion.

On the revenue side, individual income tax payments came to nearly $502 billion for the first eight months of the 2004 budget year, 3.1 percent less than the corresponding period a year ago. Corporate income tax payments totaled $96 billion so far this year, a 46.6 percent increase.

The government produced a $374 billion deficit last year, a record in dollar terms.

With a stronger economy expected to help boost overall revenues, some private economists believe the budget shortfall for this year may be about $450 billion. That would surpass last year's record but would still be better than earlier projections.

The Congressional Budget Office (news - web sites) recently said this year's budget deficit is expected to be less than the $477 billion shortfall the office projected in March. The White House has forecast a $521 billion deficit for this year and will release updated estimates this summer.

Democrats have pointed to the deficit as evidence that President Bush (news - web sites)'s economic policies are flawed.

Over the long run, budget deficits will put pressure on long-term interest rates and push up borrowing costs, they say. The Bush administration says the deficits reflect the costs of fighting a war and tax cuts, which it contends were needed to help the economy. The administration wants to cut the deficit in half in five years.

In May, the government recorded a deficit of $62.5 billion, smaller than the $88.9 billion shortfall for the same month last year. The deficit in May was based on revenues of $115.5 billion and spending of $177.9 billion.

I don't know what's scarier, that we are spending 29% more then we are taking in, or that the government responsible for it labels themselves as fiscally conservative...

[Admiral Valdemar]

Pfft, pocket change. Tell me when the Yanks really start splashing out.

[The Kernel]

Pfft, pocket change. Tell me when the Yanks really start splashing out.

Forget the sheer size of the numbers for a second. What was it the guy in Dave said about government spending?

"If I ran a business this way, I'd be out of business!"

My thoughts exactly.

[Admiral Valdemar]

Or S.R. Hadden's quote in Contact, "First rule in government spending: why build one when you can have two at twice the price?"

[Sea Skimmer]

Or S.R. Hadden's quote in Contact, "First rule in government spending: why build one when you can have two at twice the price?"

A much more accurate line would be "Why have one when you can have two, but with one slightly different so it costs more then twice as much and delays the whole project for thirty five months because the specifications where altered three days before the delivery date to ensure that a lighting system produced in the speaker of the house's district is used as often as is physically possibul."

[Admiral Valdemar]

Or S.R. Hadden's quote in Contact, "First rule in government spending: why build one when you can have two at twice the price?"

A much more accurate line would be "Why have one when you can have two, but with one slightly different so it costs more then twice as much and delays the whole project for thirty five months because the specifications where altered three days before the delivery date to ensure that a lighting system produced in the speaker of the house's district is used as often as is physically possibul."

I think John Hurt would debate that on the grounds of lack of elegance, even if it is disturbingly true.