11 Feb 2011 Economy Gaining on Government

It was a light week for economic data, but the bulk of it was very encouraging. Yesterday, the Treasury announced that tax receipts are rising faster than government spending. It is a clear sign that the economy is gaining strength. The Treasury’s budget showed that tax receipts are up 9.4% while government outlays rose only 4.8%. Four months into the fiscal year, the deficit is at $418.8 billion, down from $430.7 billion a year ago. Any news that the economy is growing faster than the government is good news.