Treasury Records Deficit in May
Tuesday, June 20th 2000, 12:00 am
By: News On 6
WASHINGTON (AP) â€” The Treasury recorded a deficit of $3.6 billion in May but is still on track to produce a record surplus for the entire year.
The government's deficit last month, announced by the Treasury Department on Tuesday, was dramatically smaller than the nearly $24 billion shortfall recorded in May 1999.
May's deficit was smaller this year because, among other things, two extra business days and an earlier Memorial Day holiday this year boosted revenues considerably higher.
Last month's deficit was bigger than the $2 billion shortfall many analysts were expecting, but was in line with the $4 billion deficit projected by the Congressional Budget Office.
Revenue for May totaled $146 billion, while expenditures came to $149.6 billion.
For the first eight months of fiscal 2000, which began Oct. 1, the government is running a surplus of $120.3 billion â€” close to the record $124.4 billion bounty for all of fiscal year 1999.
Revenue for the first eight months came to $1.3 trillion, while spending totaled $1.2 trillion.
With the expected surplus for fiscal year 2000, which ends Sept. 30, it would be the first time the government has reported three consecutive years of surplus since 1947, 1948 and 1949.
The Clinton administration is predicting a $166.7 billion surplus for fiscal 2000, while the CBO believes the surplus will exceed $200 billion.
In May, the biggest spending categories were Social Security, $38.1 billion; programs of the Health and Human Services Department, $32.3 billion; interest on the public debt, $26.8 billion; and military spending, $22.7 billion.
Revenues from individual income tax payments totaled $63.7 billion in May, compared with $30.6 billion for the same month last year. Payments from corporate taxes came to $5.8 billion, up from $3.9 billion in May 1999.