Friday, May 11, 2012

budget surplus?

NEW YORK (CNNMoney) -- For the first time in more than three years, Washington took in more money than it paid out last month.

The Treasury Department on Thursday recorded a $59 billion surplus. Tax receipts were higher and spending lower than they were last April.

The government has been bedeviled by budget deficits. The last time federal coffers were in the black for a month was September 2008, when Treasury reported a $46 billion surplus.

Of course, a lot has happened since then: a historic financial crisis, a deep recession and a slow recovery.

To counteract the negative effects on the economy, lawmakers have passed at least $2 trillion in tax cuts and spending increases since 2008.

Even though a surplus after so much time is welcome news, it's not likely to be the start of a trend. Including the April surplus, Treasury forecasts a $1.33 trillion deficit for fiscal year 2012, which ends Sept. 30.

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