Treasury Declares Lowest Deficit Since 2008

Treasury Secretary Jacob Lew
Treasury Secretary Jacob Lew

Increased revenue from taxes and reduced spending from budget cuts combined to give America’s lowest budget deficit figures since 2008, according to Treasury Department data published on Wednesday.

During the last month of the fiscal year, which goes from October to September, the government brought in $75.1 billion more than what it spent. This leaves the year’s deficit at $680 billion, down from $1.09 trillion in 2012.

For every dollar that the government spent last year it collected 80 cents. The downturn for the government was caused by the 2007-2009 economic crises, which lowered government revenues substantially while increasing spending due to large unemployment benefit payouts.

About 80 percent of the deficit’s reduction came from higher taxes collected, the Treasury said in a statement. Treasury Secretary Jack Lew said that the budget gap fell at its quickest pace since WW II during the past four years.

“Congress must build on this progress by crafting a pro-jobs and pro-growth budget agreement that strengthens the economy while maintaining fiscal discipline,” Lew said in the statement.

About Jonathon Bowes

Jonathan Bowes started his career in banking. After a few years, he took courses in business and finance and worked his way up the corporate ladder. Today, while writing part-time for Business District, Bowes assists talented people to find jobs in the field of economics. Contact Bowes at Jonathon[at]