From the CBO Director’s blog:
Spending through April was 9 percent higher than in the same period in fiscal year 2010. That increase is almost entirely explained by the difference in net costs recorded for the Troubled Asset Relief Program (TARP) and advance payments of premiums made to the Federal Deposit Insurance Corporation (FDIC) in 2010. Excluding TARP outlays and the prepayments to the FDIC (which were recorded as negative outlays), spending through April increased by less than 1 percent relative to outlays during the same period last year. [Emphasis Added]
Net interest on the public debt was the fastest-growing category [Emphasis Added] of spending, rising by $20 billion, or 16 percent. Spending for Medicaid increased by 7 percent and that for Medicare and Social Security grew by 4 percent each, adjusted for shifts in the timing of payments. In contrast, smaller cash infusions and slightly larger dividend receipts reduced net payments to Fannie Mae and Freddie Mac by $27 billion. Outlays for unemployment benefits decreased by $22 billion, or 23 percent, because of a decline in the number of claims and because average benefits were lower than they had been a year earlier.
Oh, and an Obama tax cut led to an increase in… gasp… revenues…
The increase in revenues has come from both taxes that are withheld from people’s paychecks and from other tax payments. Specifically, despite the temporary payroll tax cut in effect since January, total income and social insurance taxes withheld from paychecks rose by $46 billion (or 5 percent); that gain reflects, at least in part, the recent strength of wages and salaries in the economy.