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TheWeekInCongress.com

The Monthly Budget Review

June 2007

The Congressional Budget Office continues to conclude that the budget deficit will fall between $150 and $200 billion at the end of fiscal year 2007 on September 30, 2007. CBO notes that the federal government incurred a $152 billion deficit during the first 8 months of this current fiscal year, an amount that is $75 billion less than the shortfall in the same time period last year.

WHAT HAPPENED?

Budget totals through May

	FY 2006	Prelim FY 2007	Est. Change
Receipts	$1.545 trillion	$1.669 trillion	$124 billion
Outlays	$1.772 trillion	$1.821 trillion	$49 billion
Deficit	$227 billion	$152 billion	$75 billion

WHERE THE MONEY CAME FROM

Receipts through May

Source	FY 2006	Prelim FY 2007	% change
Individual income taxes	$687 billion	$767 billion	11.6%
Corporate taxes	$184 billion	$209 billion	13.4%
Social Insurance	$563 billion	$588 billion	4.5%
Other	$111billion	$105 billion	-5.7%
Total	$1.545 trillion	$1,669 trillion	8.0%

About 85% of revenue growth came from individual income tax receipts and social insurance taxes. Income tax receipts were about $80 billion (up 12%) and payroll receipts were about $35 billion (up 4.5%). Payroll tax receipt increases reflect increases in wages and salaries. No withheld income taxes increased by about $41 billion.

Corporate taxes paid increased by about $25 billion this far (up 13%). Profits, however, are showing more slowly than last year.

WHERE THE MONEY WENT

Category	FY 2006	Prelim FY 2007	Actual Change	Adjsted Change
Defense	$328 billion	$350 billion	6.7%	6.7%
Social Security	$360 billion	$381 billion	5.7%	5.9%
Medicare	$246 billion	$288 billion	16.8%	13.0%
Medicaid	$118 billion	$128 billion	8.2%	8.2%
Other	$568 billion	$510 billion	-10.2%	-10.%
Subtotal	$1.622 trillion	$1.658 trillion	2.2%	1.7%
Net Interests on Public Debt	$151 billion	$163 billion	8.4%	8.4%
Total	$1.772 trillion	$1.821 trillion	2.7%	2.3%

Outlays were 3% higher than last year. The increase was modified by 10% lower spending by 10% under last year. The lower spending in other categories is in contrast to last year when greater amounts were spent for flood insurance and disaster relief, agriculture programs and Medicare premiums.

This Report is revised from the original CBO report compiled by CBO’s Mark Booth, Chad Chirico, Barbara Edwards, and Kathy Gramp.

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