Federal Budget Deficit Fell to $1 4 Trillion as Pandemic Spending Eased Federal Budget - Politics HEAD TOPICS

Federal Budget Deficit Fell to $1 4 Trillion as Pandemic Spending Eased

10/21/2022 8:37:00 PM

The gap between what the government borrows and what it spends narrowed amid less spending and higher tax receipts

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The federal budget deficit fell to $1.4 trillion for fiscal 2022 from $2.8 trillion a year ago, a reduction driven primarily by the winding down of pandemic emergency spending and a surge in tax receipts, according to the Treasury Department . The gap between what the government borrows and what it spends narrowed amid less spending and higher tax receipts to see where the effects are most felt.The federal government continued to spend more than it earned in the 2022 fiscal year and to borrow money at a fast clip. Total federal borrowing increased by $2 trillion to $24.3 trillion total, partly driven by additional borrowing to finance the federal budget deficit. The U.S. government pays interest to its bondholders, and as the Federal Reserve raises interest rates, those costs are rising. Interest on the public debt increased 28 percent from last year and is expected to continue growing as the Fed raises rates. Higher rates could add an additional $1 trillion to what the federal government spends on interest payments this decade,according to estimates from the Peterson Foundation Read more:
NYT Politics » Biden: 'Mega, MAGA trickle down' will 'crash the economy' if GOP wins midterm elections U.S. budget deficit halved in fiscal 2022 as receipts surge, COVID spending fades U.S. budget deficit shrank to $1.37 trillion in fiscal 2022 as receipts surged Federal deficit cut in half, ends the year at $1.4 trillion in the red

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The pop star revisits her best—and boldest—outfits over her career. Read more >> Biden: 'Mega, MAGA trickle down' will 'crash the economy' if GOP wins midterm electionsPresident Joe Biden heartily attacked Republicans Friday while responding to the Treasury Department 's report showing the federal deficit falling by $1.4 trillion over the past year. JoeBiden He is crashing…every which way. JoeBiden Wrong. …again. JoeBiden You already crashed the economy Joe. The 2 trillion dollar stimulus bill you signed early last year caused record high inflation. The only way the fed can fix it is to cause a recession. U.S. budget deficit halved in fiscal 2022 as receipts surge, COVID spending fadesThe U.S. federal budget deficit shrank to $1.37 trillion in the just-ended fiscal year, as receipts increased sharply and COVID spending fell. elderly people in charge I don't believe a damn thing any of these folks say anymore. If I drill down on this the feeling is strong that I'll find some kind of bond-swapping smoke & mirrors that lowers the top line but carries the debt at a much higher interest rate. U.S. budget deficit shrank to $1.37 trillion in fiscal 2022 as receipts surgedThe U.S. federal budget deficit shrank to $1.37 trillion in the just-ended fiscal year, as receipts increased sharply and COVID spending fell. wabuffo Inflation is a hidden tax on the People Federal deficit cut in half, ends the year at $1.4 trillion in the redThe good news is that the federal budget deficit was substantially trimmed in half over the last year. The bad news is that it was still $1.4 trillion. Thanks to expiring emergency Covid spending. Student debt forgiveness causes monthly deficit to jump 562%; down for the yearThe federal budget deficit totaled $1.38 trillion this year. That’s down from $2.78 trillion in fiscal 2021. five New Yorkers’ food and drink habits to see where the effects are most felt.After noting that fiscal 2022 saw the national deficit halve to just under $1.The numbers: The U.The numbers: The U. The federal government continued to spend more than it earned in the 2022 fiscal year and to borrow money at a fast clip. Total federal borrowing increased by $2 trillion to $24. BIDEN TOUTS HISTORIC DEFICIT REDUCTION AS PANDEMIC AID EXPIRES, TAXES INCREASE "They're going to extend the Trump tax cuts, which are due to expire in a couple of years, extend them.3 trillion total, partly driven by additional borrowing to finance the federal budget deficit.37 trillion in the just-ended fiscal year, the Treasury Department said Friday, half the amount of last year’s shortfall. The U."They said they'd repeal the lower prescription drug costs, and it will take effect next year.S.4 trillion in fiscal 2022, the largest one-year decrease on record. government pays interest to its bondholders, and as the Federal Reserve raises interest rates, those costs are rising.. Surging tax receipts totaling $4. Interest on the public debt increased 28 percent from last year and is expected to continue growing as the Fed raises rates. Higher rates could add an additional $1 trillion to what the federal government spends on interest payments this decade, according to estimates from the Peterson Foundation . The major reduction in drug costs don't really kick in until next year. That is on top of the record $8.3 trillion for the fiscal year, a drop of 8.1 trillion in debt costs that the Congressional Budget Office projected in May. That's their plan.. Still, the administration portrayed the 2022 deficit figures as a sign that the economy was strong and that the White House was focused on improving America’s “fiscal health.” “Today’s joint budget statement provides further evidence of our historic economic recovery, driven by our vaccination effort and the American Rescue Plan,” said Janet L."Adding another $3 trillion to the deficit is reckless. The deficit would have been lower had student loan cancelation costs not been included. Yellen, the Treasury secretary. “It also demonstrates President Biden’s commitment to strengthening our nation’s fiscal health. For Americans, the difference could not be clearer.” Even as some Democrats, as well as Ms. The loan-cancelation costs contributed to a 562% increase in the monthly deficit for September. Key details: The Treasury said the deficit fell by $1. Yellen, have called for the statutory debt limit to be abolished to carry out congressionally authorized government spending, Mr." "It's mega, MAGA trickle down," the president closed. Biden said such a move would be “irresponsible.” But the president, citing the reduced deficit and last month’s streak of gas price declines, said he believed the recent economic outlook of the United States would give Democrats an edge in the midterm elections. That's the choice we're facing.” Meanwhile, a budget watchdog said the figure was no cause for celebration. A New York Times/Siena College poll this month found Republicans had a slight edge with the share of likely voters who said economic concerns were the most important issues facing America, leaping since July to 44 percent from 36 percent. “I think that we’re going to see one more shift back to our side,” Mr. You can watch Biden's remarks in full below.3 trillion for the fiscal year, a drop of 8. Biden said. That is not an accomplishment — it’s a reminder of how precarious our fiscal situation remains,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “Let me tell you why I think that. We are starting to see some of the good news on the economy.” Advertisement .