The United States federal government has reported an approximately $113 billion April surplus in its budget . This is the largest surplus in five years and though rare in occurrence, for many this is a definite sign of improving finances. The US Treasury Department revealed this in a report that was released on Friday.
April of each year
Typically a budget surplus is recorded in April of every year when American taxpayers pay their dues. The influx of annual tax payments for this April is 28% higher than last year. And give the additional revenues the current figure is higher by around $59.12 billion in 2011.
However encouraging the surplus for April is, the expected deficit for the full fiscal year is still large. The federal deficit is essentially the difference between the tax revenues and the government’s expenses.
Less budget deficit
The yearly budget deficit is the smallest since 2008 brought on by increased revenues in tax. This in turn is attributed to higher tax rates and steady growth of the economy. For the first seven months of fiscal year of 2013 from October 2012, the total budgetary deficit is $487.6 billion. This is 32% lower than the deficit for the same period the year before. Given a smaller deficit, negotiators now have more time to discuss deals that could raise the borrowing limit of the nation. The Obama administration and US legislators are agreed on putting the borrowing limit in suspension until the May 18, 2013. The deadline may even be pushed until the fall given higher revenues combined with markedly less spending.
High expectations
According to a Treasury official, the US government will benefit from incoming payments in the next month. Fannie Mae, a mortgage company is due to pay $59.4 billion while Freddie Mac will pay $7 billion. These companies are raking profits once more. During the height of the financial crisis they received loans from the government and are now paying dividends.
Photo Credit: U.S. Treasury
Facebook
Twitter
Pinterest
Google+
LinkedIn
Email