Budget deficit up $56 billion over last year

The Cungressional Budget Office has reported that budget deficit estimates totaled about $347 billion for the first eight months of fiscal 2004, which is $56 billion more than the deficit reported for the same time period last year.

The reason for the increase, CBO said late last week, was that while revenues have increased by about 2 percent, outlays have increased by 6 percent. Revenues increased by about $24 billion; outlays increased by $80 billion.

Corporate income tax receipts were up about $30 billion, while social insurance taxes were higher by about $12 billion than over the same period last year. Individual income tax receipts were down about $16 billion.

In May, the deficit was about $65 billion, or $24 billion less than last May's deficit. Tax receipts were about $10 billion higher than last May because refunds were about $10 billion lower, CBO reported -- primarily because refunds are mostly reported on Fridays and this May had one fewer Friday than last year.

Defense spending through May was about 14 percent higher than last year, and outlays for Medicare, Medicaid and Social Security grew by about 6 percent higher than in the first eight months of fiscal 2003, while total outlays for other programs grew by about 4.6 percent.