Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, March 22, 1990 TAG: 9003221796
SECTION: NATIONAL/INTERNATIONAL PAGE: A3 EDITION: METRO
SOURCE: Associated Press
DATELINE: WASHINGTON LENGTH: Medium
The Treasury Department said the deficit last month was $36.42 billion, 30.1 percent above the $27.87 billion imbalance in February 1989.
Receipts totaled $65.17 billion in February, up 5.3 percent from the same month last year. But expenditures amounted to $101.58 billion, a 13.2 percent increase.
"The revenues weren't so bad, but the expenditures were way up," said economist Michael K. Evans, head of a Washington forecasting firm.
"It was the significant acceleration in federal spending in February that allowed the deficit to widen here," agreed William V. Sullivan Jr., director of money market research at Dean Witter Reynolds Inc. in New York.
The February deficit followed a $9.42 billion surplus in January, the first for the fiscal year that started Oct. 1.
Evans and Sullivan noted that the Gramm-Rudman target for fiscal 1990 has all but been abandoned, with Evans suggesting the actual imbalance for the year will total $160 billion to $165 billion.
"Unless there's a miracle, we'll come in ahead of last year, which was $152 billion," Evans said.
The 1990 deficit through February was 5.3 percent above that for the first five months of fiscal 1989. Receipts were up 5.6 percent to $393.48 billion for the period, while outlays were up 5.5 percent to $490.99 billion.
As usual, the biggest spending categories in February were for the military, Social Security and other programs in the Department of Health and Human Services and interest on the national debt.
Military spending totaled $24.26 billion in February and $116.78 billion so far this year. It is projected to total $286.79 billion for the entire fiscal year.
Social Security payments amounted to $20.51 billion for the month and $99.04 billion for the year so far. They are expected to total $244.59 billion for the year.
Other HHS programs, including Medicare and Medicaid, totaled $15.54 billion for February and $75.25 billion so far. They are projected to cost $191.17 billion for the year.
Interest on the national debt totaled $17.32 billion during February and $111.73 billion so far this year. It is expected to total $254.85 billion for the year.
by CNB