by Calculated Risk on 5/04/2006 03:22:00 PM

For the first seven months of the 2006 fiscal year (starts Oct 1st), the National Debt has increased $423 Billion. The previous nominal record was $385 Billion for the first seven months of fiscal 2005.


Click on graph for larger image.

April was a strong revenue month for obvious reasons. As a percent of GDP, the deficit has improved slightly over the last few years.

The annual increase in the debt is running around 4.5% to 5.0% of GDP. This is a classic "structural budget deficit" or "high employment deficit" - something most economists believe should be avoided.

Meanwhile, from Bloomberg: U.S. Budget Deficit Will Be `Well Below' Forecast, Adams Says

"We think that this year's number will actually come in well below the estimate," Tim Adams, undersecretary for international affairs, told reporters today in Hyderabad, India. "Revenues are sufficiently strong. We think the actual number for 2006 will be closer to what we saw last year."

Anyone else experiencing a little déjà vu?

"The U.S. budget deficit is falling, and it is falling fast."

Joshua Bolten, July 14, 2005

Same speech. Different year. New record annual increase in the National Debt.