Tax Payments Help Push U.S. to an April Surplus

Less spending and more taxes are paying off for the U.S. government. The Treasury Department announced a surplus of $106.9 billion for April, according to a report released today, down slightly from last April's $112.9 billion surplus. The government typically runs a surplus during April, when individual tax returns are due and corporations make quarterly tax payments.  

After March had clocked in at a $36.9 billion deficit, tax time helped this latest report soar into surplus territory. Analysts had expected as much, and their $114 billion surplus estimate proved to be slightly higher than actual numbers. 

Overall April receipts (inflow) totaled $414 billion, while total outlays clocked in at $307 billion. The country is still running an overall deficit for the fiscal year.

Source: Treasury Department. 

The year-to-date numbers show some upside. For fiscal 2014, which began Oct. 1, 2013, the Treasury's deficit comes in at just $306 billion, a 37% improvement over the same period for the 2013 financial year.

On the receipts side, individual income taxes are up around $28 billion from the prior-year period to $823 billion fiscal-year-to-date, while corporate income taxes have increased just over $20 billion from the prior-year period to hit $157 billion fiscal-year-to-date.

On the expenditure end, a tapered defense spending budget (down $20 billion to $341 billion fiscal-year-to-date), as well as lower interest expenses, helped keep more money in the government's piggy bank.

The CBO released a report last month stating that if current laws stay the course, the budget deficit in fiscal year 2014 would be $492 billion. At an estimated 2.8% of gross domestic product (GDP) that would be nearly a third less than the $680 billion shortfall in fiscal year 2013, which was equal to 4.1% of GDP, said the CBO

-- Material from The Associated Press was used in this report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2954258, ~/Articles/ArticleHandler.aspx, 11/25/2014 3:51:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement