Washington, DC, United States (4E) – The U.S. budget deficit continues to fall significantly this year amid stronger tax revenues and a strengthening economy.
From last October through June, the deficit of the federal government reached $366bn, lower by 28 percent from a year-ago period, according to the U.S. Treasury Department statement on Friday. The federal fiscal year started Oct. 1.
The year-to-date deficit has dropped to its lowest level since 2008, when the country was in recession. The deficit reached its peak in 2009 but has since declined, driven by government spending cuts, higher taxes and moderately strengthening economy.
Revenues grew faster than government spending in June largely because of the cycle of tax collections, resulting to a surplus of $71bn for the month.
The figure compared with forecasts of economists surveyed by The Wall Street Journal for $79bn surplus in June.
The Treasury Department said that federal receipts expanded 8 percent to $2.259tn in the October to June period. Spending jumped 1 percent to $2.624tn.