US gov't reports largest surplus in 5 years

[Ombudsman]

WASHINGTON — The federal government on Thursday reported a rare surplus of $116.5 billion in June, the largest for a single month in five years. The gain kept the nation on track for its lowest annual deficit in five years.

The June surplus was due in part to $66.3 billion in dividend payments from Fannie Mae and Freddie Mac. The mortgage giants were taken over by the government at the height of the 2008 financial crisis and are now repaying taxpayers for the support they received.

Through the first eight months of the budget year, the deficit has totaled $509.8 billion, according to the Treasury. That's nearly $400 billion lower than the same period last year.

The Congressional Budget Office forecasts the annual deficit will be $670 billion when the budget year ends on Sept. 30. If correct, that would be well below last year's deficit of $1.09 trillion and the lowest since President Barack Obama took office. It would still be the fifth-largest deficit in U.S. history.

The Obama administration also estimates a lower annual deficit, although it projects a slightly higher figure of $759 billion...

...The budget gaps in the next three years were slightly lower as a gradually strengthening economy generated more tax revenue.

President George W. Bush also ran large deficits through most of his two terms in office after he won approval for broad tax cuts and launched wars in Afghanistan and Iraq.

The last time the government ran an annual surplus was in 2001.

http://www.therepublic.com/view/story/f ... et-Deficit

[Wneglia]

WASHINGTON — The federal government on Thursday reported a rare surplus of $116.5 billion in June, the largest for a single month in five years. The gain kept the nation on track for its lowest annual deficit in five years.

The June surplus was due in part to $66.3 billion in dividend payments from Fannie Mae and Freddie Mac. The mortgage giants were taken over by the government at the height of the 2008 financial crisis and are now repaying taxpayers for the support they received.

Through the first eight months of the budget year, the deficit has totaled $509.8 billion, according to the Treasury. That's nearly $400 billion lower than the same period last year.

The Congressional Budget Office forecasts the annual deficit will be $670 billion when the budget year ends on Sept. 30. If correct, that would be well below last year's deficit of $1.09 trillion and the lowest since President Barack Obama took office. It would still be the fifth-largest deficit in U.S. history.

The Obama administration also estimates a lower annual deficit, although it projects a slightly higher figure of $759 billion...

...The budget gaps in the next three years were slightly lower as a gradually strengthening economy generated more tax revenue.

President George W. Bush also ran large deficits through most of his two terms in office after he won approval for broad tax cuts and launched wars in Afghanistan and Iraq.

The last time the government ran an annual surplus was in 2001.

http://www.therepublic.com/view/story/f ... et-Deficit

Looks like the sequester is working.

[O Really]

Looks like the sequester is working.

Seriously? Even if the sequester were responsible for the surplus, you'd consider this mess "working"?