What Deficit?

U.S. Posts $113B April Surplus

Paul J. Richards/AFP/Getty

A pressman checks uncut sheets of USD 20 bills on July 12, 2012, at the US Bureau of Engraving in Washington, DC, where the high-tech presses run 24-hours a day.

What’s that? The government’s finances aren’t in the toilet? The U.S. posted a rare surplus for the month of April, adding $113 billion to the federal coffers and signaling that the country’s financial outlook is improving. The surplus was the largest in five years, and the government is on track to post the smallest annual deficit since 2008. Over the first seven months of the current budget year, the U.S. deficit was $488 billion, down from $720 billion in the same period last year. Higher tax rates and economic growth are responsible for improving the picture.