US budget shows an interesting trend, while in March there was a significant deficit, the next month the situation changed dramatically - recorded surplus at a high level. What does this mean?
Recall that in March, the budget deficit stood at $ 208.7 billion, which is 18% higher than the same period last year. In addition, a record budget deficit for the entire period of statistics for that month.
The most amazing thing, but it was only one month and all radically changed - instead of the collapse of the US economy, the impossible happened - instead of the budget deficit a surplus was recorded, and recorded significant revenue -. More than $ 500 billion
Congressional Budget Office has commented on this situation by the fact that this indicates a strong economic activity in April.
Of course, this caused a lot of questions, and the main of them - the reason for such changes. Someone thinks that it is the consequences of the new tax reform, but the data show that this is not true.
Corporate income taxes for the last month reached the level of $ 42.2 billion and $ 120.8 billion in the first seven months - these figures are lower than that recorded last year.
In addition, it should be noted that most of April always shows good results in filling the budget, since in this period, taxpayers make basic payment.
If you take the overall performance for the first seven months, the budget deficit reached the level of $ 385 billion. This value is significantly lower than the overall deficit, which was recorded in the previous month and amounted to $ 600 billion. But experts immediately tell that this is a temporary phenomenon.
Tax cuts and increased spending budget will be factors in the deficit this fiscal year, rising to $ 804 billion. Last year, it stood at $ 665 billion. In addition, the Congressional Budget Office believes that it is literally in 2020, the budget deficit will exceed $ 1 trillion.
But Washington's vision of the problem. They are confident that the new tax reform will give a boost to the acceleration of economic growth, which in the future will lead to higher tax revenues. But this view only in the administration of Trump ...
The IMF believes that by 2023 the US fiscal position will be much worse than that of Italy and Mozambique. The ratio of gross public debt / GDP ratio in the United States will rise to 116.9% against the figure for Italy in 116.6% and 112.5% in Mozambique.
Based on materials WELTRADE