That’s how much the federal budget deficit fell in fiscal year 2013 compared with the previous year.
The deficit in the 12-month period ending in September was $680 billion, down from $1.089 trillion in fiscal year 2012, according to Treasury Department data. It’s the smallest budget deficit in five years, as Bloomberg’s Kasia Klimasinska reported here.
The deficit fell to 4.1 percent of gross domestic product from 6.8 percent in the previous year.
Receipts rose by about $325 billion, to $2.774 trillion from $2.449 trillion, accounting for more than 79 percent in the decrease of the deficit.
Revenues rose partly because the economy improved and also because of changes to tax laws in a January measure that averted the so-called fiscal cliff. The law allowed a two-percentage-point payroll tax cut to expire and also raised taxes on wealthy taxpayers.
Outlays fell to $3.454 billion from $3.538 billion a year ago, a 2 percent decrease.
“The reduction in outlays can be attributed to lower defense spending from the troop drawdown in Afghanistan, lower spending on unemployment compensation due to lower unemployment rates, higher dividend income from Fannie Mae and Freddie Mac, and spending cuts from sequestration across numerous agencies,” according to a joint statement Oct. 30 from Treasury Secretary Jacob J. Lew and Sylvia Burwell, director of the White House’s Office of Management and Budget.