US Daily Cash Deficit 2/17/2015

The US Daily Cash Deficit for Tuesday 2/17/2015 was $18.6B as strong post holiday revenues were overwhelmed by $37.5B of interest payments.

2015-02-17 USDD

For the most part, our timing issues are behind us, giving us a fairly clean YOY comparison. Revenue is up a healthy $19B….About $8B of that is lower refunds….primarily timing related. I don’t really see a material slowdown in refunds due to “obamacare”…yet. Last refunds over the last 8 days of the month ran at about a $6.5B clip per day….if 2015 runs even $1B per day under that it could open up a big gap by the end of the month.

Outlays stand at +$5B, which is basically flat after pulling out the $6B of interest that slipped from January to February. Put it together and despite the $103B deficit, we seem on track to put a good month in the books as revenue is growing and outlays are flat. If we stay on this course, we have a chance to slide in under a $200B deficit, but it is really going to come down to refunds.

Shifting down to the second row of charts, 2015 revenue is looking ok…at +4%, with outlays pretty much flat.

US Daily Cash Deficit 2/9/2015

The US Daily Cash Surplus for Monday 2/9/2015 was $2.2B bringing the February 2015 deficit through 9 days to $37B.

2015-02-09 USDD

Thanks to $19B of refunds that went out 2/10/2014, depressing recognized revenues, 2015 has pulled back ahead in revenues, and refunds are essentially now even as well with 2014 at $31B and 2015 at $32B. Last year ended up at $128B for the month….I am not expecting 2015 to keep pace, but you never know. Through 6 days, revenue is up about $4B on what looks like bonafide growth, and outlays are up $6B on timing. To put it in perspective, we seem like we are on track for a $200B+ deficit for the 7th February in a row in a row.

US Daily Cash Deficit 2/6/2015

The US Daily Cash Deficit for Friday 2/6/2015 was $9.5B bringing the February 2015 deficit through 6 days to $39B.

2015-02-06 USDD

As expected, refunds dominate the chart, with 2015 back out to a $14B lead that is holding back net revenues in a big way. As it stands, revenue is down and outlays are up…..but adjusted for timing and pulling refunds out, it’s not so bad….yet. Withheld taxes show a glimmer of hope at +7% and $4B. While dwarfed by refund noise so far, this is by far the largest revenue source, so establishing a solid growth base here would be a positive development. For the year, this category is at +3.6% after a not so great January, but the year is young.

US Daily Cash Deficit 2/5/2015

The US Daily Cash Deficit for Thursday 2/5/2015 was $5.0B bringing the February 2015 deficit to $30B through 5 days.

2015-02-05 USDD

Refunds for 2015 stand at $15.5B vs $11.8B last year, so the gap has been closed considerably as expected. The pace of refunds should pick up next week….2014 posted $58B of refunds in the second week of February. I was flipping through last February’s posts and it jogged my memory about the brief debt ceiling fight about this time last year that ended up with a clean debt limit hike through March 2015. There was a week or two where Treasury was using “extrordinary measures” to circumvent the limit. When they do that, it screws up the cash deficit calculations, because they essentially take debt off the balance sheet and pretend like it doesn’t exist. Since EM started and were resolved in the same period it didn’t cause any issues for the monthly cash deficit calculation, but it did end up screwing up a lot of the day to day. The other day I noted that the month would be a pretty clean YOY comparison since we started on the same day and had the same number of business days. Turns out….that’s not going to be the case until about 2/19 when all of the EM was unwound last year. Until then, our outlays and deficit are going to be out of sync…especially next week. Revenues should be still in sync though, so sit back and enjoy the show.

US Daily Cash Deficit 2/3/2015

The US Daily Cash Deficit for Tuesday 2/3/2015 was $33B bringing the February 2015 deficit through 3 days to $20B after Monday’s $10.6B surplus.

2015-02-03 USDD

As is standard here, I have synced up 2015 and 2014 on day of the week so we are comparing 2015 through Tuesday 2/3 to 2014 through Tuesday 2/4. Both February 2014 and February 2015 start on a Monday(business day), end on a Friday, and have 19 business days, so we should be pretty well synced up for the whole month. Starting out, revenues are flat and outlays are up $6B…most of which is January’s interest payment that slipped from 1/31 to 2/2. However, refund season is clearly here with nearly $6B of refunds so far in addition to January’s $11B. 2014, however, didn’t kick off until Thursday 2/6/2014….but once it did it was pretty strong. The YOY delta in this account is likely to be the biggest driver this month, so we’ll pay close attention to it especially starting next week. For now, 2014 and 2015 are pretty much tied up….