Deficit Decrease Delay

Looks like the deficit in Q1 of FY 2010 was about $56 billion more than the same time last year. Although spending went down, revenues went down even more. Here’s what CBO Director Douglas Elmendorf had to say on his blog:

The federal budget deficit was about $390 billion in the first quarter of fiscal year 2010, CBO estimates in its latest Monthly Budget Review—$56 billion more than for the same period in fiscal year 2009 despite reduced spending related to turmoil in the financial markets. Outlays were slightly lower than they were last year at this time, but revenues have fallen by about 11 percent. Later this month, CBO will issue new budget projections for 2010 and the following 10 years. [link]

These are estimates, of course, but it’s always interesting to hear what the CBO has to say.

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