CBO put out their Monthly Budget Review today. This one reports that in the first 8 months of FY 2005, the government incurred a deficit of $273 billion, which is $73 billion less than the recorded shortfall in the first 8 months of FY 2004. This is partially because revenues are up 15 percent, while outlays are only up 7 percent. They have risen $183 billion and $110 billion, respectively. Corporate income tax receipts are up 48 percent compared with the first 8 months of last year, and this increase primarily reflects a growth in corporate profits in the 2004 calendar year. Notably, spending on Medicare is also up significantly - more than 10 percent - as is spending on farm income-support, nutrition, and education programs, and disaster relief activities administered by the Department of Homeland Security. While the administration's tax and budget policies may appear to be cutting deficits in half, as the President promised, in reality they will end up costing much more in future years. For more info on that, click here.