Budget

Deficit for 2014 reaches $379 billion, CBO says

The non-partisan Congressional Budget Office estimated Monday that five months into fiscal 2014, the federal budget deficit has reached $379 billion, a $115 billion improvement from last year.
 
Most of the change comes from an increase in revenue. Revenue is up $94 billion to $1.104 trillion this year, while spending has dropped $21 billion to $1.483 trillion.
 
Income taxes and payroll taxes are up $69 billion, while on the spending side housing giants Fannie Mae and Freddie Mac have increased their payments to the treasury by $34 billion. 
 
{mosads}The so-called food stamp cliff contributed to a $10 billion drop in food stamp spending during the time period while the expiration of extended unemployment benefits decreased outlays for the program by 28 percent or $9 billion
 
As expected, however, these spending cuts were balanced by gains in mandatory entitlement programs driven both by the aging population and ObamaCare. Social Security spending rose $16 billion and Medicaid rose by $8 billion.
 
For February, the deficit is estimated to be $195 billion.
 
CBO estimates are usually nearly identical to official budget numbers that come out a few days later each month from the Treasury department.