-Sees FYTD2013 Deficit Of -$292 Bln Vs -$236 Bln A Year Ago

WASHINGTON (MNI) – The following are excerpts from the Congressional Budget
Office’s Monthly Budget Review published Friday:

The federal budget deficit was $292 billion for the first two months of
fiscal year 2013, $57 billion more than the shortfall recorded in October and
November of last year, CBO estimates. Without shifts in the timing of certain
payments in each year, however, the deficit for the two-month period would have
been about $8 billion lower this year than in fiscal year 2012.

The U.S. Treasury reported a deficit of $120 billion for October, about $7
billion more than CBO’s estimate based on the Daily Treasury Statements. That
difference occurred in part because spending was higher than projected for the
crop insurance program, which experienced both unexpectedly high payments for
drought losses and delays in collections from private insurance companies.
Outlays for the Departments of Homeland Security, Justice, and the Treasury also
exceeded CBO’s estimates.

The deficit in November was $172 billion, CBO estimates, $35 billion more
than in the same month last year. However, spending this year was significantly
influenced by the shift of certain payments from December to November (because
December 1 fell on a weekend); if not for those shifts, the deficit in November
2012 would have been only $1 billion greater than the shortfall in November

CBO estimates that receipts in November 2012 totaled $161 billion – $9
billion (or 6 percent) more than receipts in November 2011. Net receipts from
individual income and payroll taxes rose by $7 billion (or 5 percent), primarily
because of an increase of $6 billion (or 5 percent) in withheld taxes. Receipts
from the Federal Reserve and from corporate income taxes rose by $2 billion and
by a net of $1 billion, respectively.

Outlays were $44 billion higher in November than during the same month last
year, CBO estimates. Without the shift in the timing of certain payments, the
spending increase would have been much smaller – about $10 billion. Outlays for
Social Security benefits were $4 billion higher than in November 2011; outlays
for Medicare (adjusted for the timing shift) and for net interest on the public
debt were higher by $2 billion each. Spending increased by smaller amounts for
several other programs. In contrast, outlays for unemployment benefits were $2
billion lower than in November 2011.

The Treasury will record a deficit of $292 billion for the first two months
of fiscal year 2013, CBO estimates – $57 billion more than the shortfall
recorded in the same period last year. Revenues rose by $30 billion (or 10
percent), but outlays increased by $87 billion (or 16 percent).

–MNI Washington Bureau; tel: +1 202-371-2121; email: besene@mni-news.com

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