Posted March 20, 2013 by Andrew Kyros in Business

Budget deficit in United States increase to $204 billion

Budget deficit in United States increase to $204 billion
Budget deficit in United States increase to $204 billion

The United States federal budget increased from last month and reached a rate higher than what most experts expected. Many people that this is mainly due to higher taxes that were imposed and an economy that is somewhat improving. The United States Treasury Department announced yesterday that the budget deficit has increased to $203.5 billion last month and this is a $2.9 billion increase from January.

This is even lower by $87 billion than last year and many experts are predicting that this budget is going to be stable for 2013. Even though many people are viewing this as an improvement, the American government is still going to have to borrow about 24 cents for every single dollar that is going to be spent on various operations this year. Higher security taxes also contributed to this smaller deficit as the tax rate for all Americans who had a stable income increased by around 2% this year. The tax rate increase is expected to increase to $10 billion for the remaining of this year which will end in September.

The American government is currently receiving a lot more when it comes to income taxes and this clearly shows that businesses are blooming and the unemployment rate has decreased as many people are now able to find jobs, have a steady income, and pay their taxes comfortably. The economic growth has also contributed to the boost in tax receipts especially that more than 180,00 new jobs were generated. The President and leaders from the GOP are currently trying to reach an agreement to decrease the deficit but for now, there have been very few signs of any progress. President Obama has met with members of the Republican Party yesterday but it is obvious that this is not going to go smoothly. The budget deficit is a specific amount that the American government has to borrow when the overall expenses are exceeding the current revenue.

The deficit every month is usually very volatile and can be severely affected by political and economic situations. This will greatly affect businesses as well especially that most experts don’t want the scenario that happened during 2009 to get repeated again when the deficit almost reached $2 trillion. For now, the only thing that is obvious for now is that the state of the economy is improving in the United States, businesses are improving, and many people are employed successfully.

Andrew Kyros

Andrew Kyros joined Market Voice News as a general assignment reporter. Andrew received a national Edward R. Murrow for spot news award and the regional Associated Press award for best newscast. Andrew attended Riverview High School near Coshocton, and graduated from Ashland College in Ashland, Ohio with a Bachelor of Arts degree in Communications. Andrew is our senior analyst and investigative reporter at The Market Voice News, Andrew has also reported on corporate corruption and related news.