U.S. budget deficit plunging in fiscal 2014 «

    U.S. budget deficit plunging in fiscal 2014

    The U.S. Treasury reported some positive fiscal news on Monday: For the first quarter of the fiscal year that began in October, the budget deficit was $120 billion lower compared with the same three months in the year-ago period.

    It was further confirmation that the deficit is falling as the economy improves, and the government spends less and collects more in revenue.

    The government’s fiscal year runs from October to September.

    To get an idea of how quickly the deficit is dropping, consider how much it fell from calendar year 2012 to 2013. For all of 2013, the deficit was $560.5 billion compared to $1.06 trillion in 2012. That’s a drop of about $500 billion.

    Three months into fiscal 2014, in other words, the deficit has dropped just over one-fifth of what it did in a whole calendar year.

    Numbers like these will make calendar year 2009 a distant memory: that year the deficit peaked at $1.47 trillion, up from $680 billion in 2008, as the U.S. struggled with the financial crisis.