The Monthly Budget Review, As Budget As You Have Heard

Scanning the CBO data will make you weep , leading to collapse in receipts was a a 59% drop in Corporate tax receipts coupled with a 24.4 percent drop in personnel income taxes. On top of this we are seeing skyrocketing costs for entitlement programs:

Spending for Medicaid rose by 21 percent (or $25 billion) through April compared with last year. Over half of that growth resulted from provisions in ARRA that increased the government’s share of Medicaid payments. Spending or Medicare grew by 10 percent (or $22 billion), but that growth is overstated because it reflects a $4 billion reduction in Medicare spending last year to correct for previous overpayments to prescription drug providers.Adjusting for that reduction, Medicare spending rose by8 percent.

How bad is it overall?

Yesterday CBO released its Monthly Budget Review for May. The federal government incurred a deficit of close to $800 billion for the first seven months of fiscal year 2009, CBO estimates—$646 billion more than the deficit recorded through April 2008. Notably, receipts in April were about $140 billion (or 35 percent) lower than receipts in April 2008, CBO estimates. The sharpest drop was in corporate receipts; net corporate receipts, largely representing corporations’ first quarterly tax payment for 2009, declined by about $29 billion (or 69 percent). Non withheld receipts for individual income and payroll taxes—mainly amounts paid with income tax returns filed in April fell $84 billion (or 36 percent). Refunds of individual income taxes increased by $11 billion (or 24 percent). That change in net receipts associated with income tax filings was roughly in line with CBO’s expectations.

There isn't that much of a surprise here, Obama's budget was never based in reality, nor was it meant to be. Every number they spout is designed as a talking point to carry the argument until legislation is enacted, by then its too late. Now with Obama peddeling his health care savings nonsense, we had better be prepared for budget numbers that actually will be even worse.
Even more stunning, the Obama admin is still pushing nonsensical growth predictions including G.D.P growth of 3.5% next year. Oh and by the way, the Entitlement Debacle is still there:

NEW YORK (CNNMoney.com) -- The financial crisis has cast a shadow over a perennial debate in Washington: How to ensure the long-term financial health of Social Security.

While President Obama has taken on more major issues in his first few months than most presidents, the entitlement program for retirees hasn't made the list.

But on Tuesday, the reform debate is likely to be revived, if only temporarily, with the release of the annual report from the trustees who oversee Social Security and Medicare.

Experts expect the trustees' short-run projections for both programs to be worse than they were a year ago.

Demands on both have grown while money paid into the system has fallen because of growing unemployment and various new tax breaks in the economic stimulus package enacted in February.The White House budget office estimates that Social Security will take in less in payroll taxes than it must pay out in benefits for 2009 through 2011. And then the system is expected to start running a small cash surplus for a few years before once again taking in fewer taxes than it pays out in benefits