U.S. Budget Surplus rises in April, Tariffs only a modest proportion of that
April saw a strong budget surplus of $258,4bn, up from $208.5bn in April 2024, though the deficit in the fiscal year to date of $1048.7bn is up from $855.2bn in the seven months to April 2024, and the 12 month average has been above $2trillion for seven straight months. The deficit on FY 2024 was $1.832 trillion.
Receipts saw a strong month, up 9.5% versus 4.9% in the fiscal year to date, with individual income tax up 11.4% and customs duties surging by 145.5%, However, the rise in customs duties from April 2024 was only $9.3bn, thus explaining only 19% of the yr/yr surplus increase, and consistent with tariffs taking only around $0.1trillion off a likely $2 trillion annual budget deficit. Spending was up 4.4% yr/yr, compared with 8.9% in the fiscal year to date. Education and international affairs saw particularly steep declines, but make up only around 3% of the total
