CBO: 2014 deficit reaches $301 billion

The nonpartisan Congressional Budget Office on Wednesday estimated that the deficit for the first seven months of fiscal 2014 reached $301 billion in April.

The total is $187 billion less than the April to October shortfall in 2013.

The CBO said revenue increased $132 billion, or 8 percent, while spending decreased by $55 billion, or 3 percent.

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Individual income and payroll tax revenue are up due to both increased wages and salaries, and because of the end of the 2 percent payroll tax holiday.

The spending decrease is mostly attributed to increased payments from housing giants Fannie Mae and Freddie Mac, to the tune of $42 billion. The payments count as decreased spending on CBO’s books.

Pentagon spending is down $19 billion, and the expiration of extended unemployment benefits contributed to a 31 percent of $14 billion decrease in outlays for the program.