Kerby Anderson
The Federal government is running out of money and needs to raise the debt ceiling. But the debate centers on whether Congress can bring some controls on spending before raising the debt limit. The argument for spending controls was strengthened by the latest numbers from the Congressional Budget Office for the month of April.
April is usually the best month for the federal government since that is when tax payments are due for the previous year. But the April 2023 budget surplus fell by $135 billion from April 2022. When you include various adjustments, the decline was $275 billion. That means higher budget deficits for the rest of the year.
The primary reason for the mounting deficit is spending, which is up 12 percent in the first seven months. Entitlements are up 11 percent, while education spending is up 56 percent.
The other reason for the increasing deficit is decreasing revenue to the Federal treasury, which fell by 10 percent. Individual income taxes fell 18 percent.
Here’s a quick summary. Spending has increased significantly, while revenue has decreased. And the president and many Democrats do not want any spending decreases tied to what they feel should be an automatic increase in the debt limit. Does that make any sense to you?
By the way, it gets worse. Interest on the national debt rose 40 percent. That is due to the Federal Reserve raising interest rates. That portion of the Federal budget is growing faster than any other area. And borrowing more money in the future will also be more expensive.
The national debt is larger than our nation’s Gross Domestic Product. Federal spending is up, and federal revenues are down. And the cost of borrowing more money is increasing significantly. That’s why it is time to rein in spending.
This post originally appeared at https://pointofview.net/viewpoints/spending-and-revenue/?utm_source=rss&utm_medium=rss&utm_campaign=spending-and-revenue
