The numbers: The U.S. posted a budget surplus of $308 billion in April — the largest on record — owing to a big increase in federal taxes and lower spending after the end of government stimulus.
Based on current trends, the government could register a budget deficit of under $1 trillion in fiscal 2022 for the first time since the start of the pandemic.
Key details: The amount of taxes collected last month almost doubled to $864 billion — also a record high — from $439 billion a year ago.
Part of the increase compared to April of last year stemmed from the tax filing deadline in 2021 being pushed back to May.
This year the deadline was moved back to its original April date, which boosted tax receipts.
Government spending in April totaled $555 billion, down from $665 billion a year earlier, the Treasury Department said Wednesday.
For the first seven months of the current fiscal year, the deficit totaled $360 billion compared to $1.9 trillion in the same period last year.
The fiscal year began Oct. 1 and ends Sept. 30.
Big picture: The deficit has fallen sharply because of the soaring tax revenue and the end of the massive federal stimulus.
The big surprise are soaring individual and corporate taxes, reflecting rising incomes and strong business profits. High inflation may also be starting to play a role.
Despite the shrinking budget gap in the current fiscal year, the U.S. national debt stands at a record $30.4 trillion.
This article was originally published by Marketwatch.com. Read the original article here.