Someone asked me my view of the reportedly narrowing Government spending deficit. The fact is that the Government uses gimmicks in order to move expenditures "off budget" in order to hide the truth (imagine that...). Notwithstanding this, we can get a pretty accurate accounting of the actual cash in/cash out spending deficit by measuring the change in Government debt outstanding during any Fiscal Year period. To be sure, the total deficit runs in the several trillions, but this would be based on GAAP accounting of all expenses, including the accumulating entitlement expenses, which we know will never be paid.
I've outlined below why, even if you want to believe the Government's story that the deficit is narrowing, it really did not.
The budget deficit is lower this year for a couple reasons, all of them non-recurring:
1) We had a big one-time in tax revenues in December/January (remember the U.S. fiscal year starts in October) because of the tax increase in capital gains on Jan 1 triggered a wave of asset sales that generated a big jump in tax revenues. You can find charts using google that show this. ...