For the first time since the Wall Street Collapse in September of 2008, the federal government has posted a monthly budget surplus, as Uncle Sam took in $59 billion more than was spent in April of 2012.
Federal revenues were $318 billion in April, while spending was $259 billion, a full $70 billion less than one year ago, when the feds posted a $40 billion deficit.
Budget crunchers still believe the overall deficit for this fiscal year will be in the range of $1.2 trillion, down slight from $1.3 trillion a year ago.
Still, there are signs out there of increased economic activity at both the federal and state level:
* Ohio saw income tax payments surge in April by $84 million more than expected, as the Buckeye State has had $350 million more in revenue come in so far this fiscal year.
* Georgia had an 11% increase in tax revenues in April; that's up 5.4% or $677 million from a year ago.
* Oklahoma has seen more retail activity - Tulsa, Oklahoma saw its sales tax revenue jump 12% in April, as the city has had nine straight months with increases in sales tax revenues, while Oklahoma City had a 10% increase in sales tax revenues in April.
That may bode well for the federal government in coming months, because I have found, from years of watching these kind of figures, that often the federal government lags about a year behind what's happening at the state level - good or bad.
At the federal level, if revenues do come in a bit higher than expected, it will mean a smaller deficit, since spending has basically been flat the last few years.
But - let's get real - a lot has to change to get the federal budget back in the black.
About the Author
Featured
