Thursday, October 8, 2020

The September 2020 deficit was $124 billion

The federal budget deficit was $3.1 trillion [actually $3.131 trillion] in fiscal year 2020, the Congressional Budget Office estimates.  The federal government incurred a deficit of $124 billion in September 2020—compared with an $83 billion surplus in September 2019.  https://www.cbo.gov/system/files/2020-10/56661-MBR.pdf

This is really bad.  The government almost always has a surplus in September because it receives large amounts of taxes.  This year, the revenue in September was similar to September 2019, but the spending was much greater: $496 billion of outlays compared to $291 bn in Sept 2019.

Question:  has the government ever run a deficit in September before and if so, what year was the last time that happened?  Well let's see:

Sept 2019 $83bn surplus

Sept 2018 $119bn surplus.

Sept 2017 $7bn surplus

Sept 2016 $33bn surplus

Sept 2015 $90bn surplus

Sept 2014 $105bn surplus

Sept 2013 $75bn surplus

Sept 2012 $75bn surplus

Sept 2011 $62bn deficit.  In 2011 the government ran a deficit in every month and had a deficit for the year of $1.296tn.

When was the last monthly surplus before that? That would be Sept 2008 which had a surplus of $45 billion even though the financial crisis began that month.

So we may be looking at 3 years of deficits every single month.


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