Budget gap narrows to $69.6 billion in July vs. year ago

WASHINGTON Fri Aug 10, 2012 2:49pm EDT

The U.S. Treasury building is seen in Washington, September 29, 2008. REUTERS/Jim Bourg

The U.S. Treasury building is seen in Washington, September 29, 2008.

Credit: Reuters/Jim Bourg

WASHINGTON (Reuters) - The monthly U.S. budget deficit shrank to $69.6 billion in July from $129.4 billion in the same month a year ago, reflecting a rise in government receipts and a drop in spending.

The Treasury on Friday said receipts totaled $184.6 billion in July, up from $159.1 billion a year ago. Government outlays fell to $254.2 billion, from $288.4 billion a year ago.

The $69.6 billion deficit in July was less than the $103.0 billion budget shortfall expected by analysts in a Reuters poll.

The drop in spending partly reflected $35 billion in recurring benefit payments made on July 1, a Sunday, that were accelerated into June, Treasury said.

July 2012 also had one more business day than July 2011, accounting for about $6 billion in additional receipts.

For the first 10 months of fiscal 2012, the government's budget gap totaled $974 billion, $126 billion below the corresponding year-ago deficit, the Treasury Department said.

Still, the deficit is on track to exceed $1 trillion for the fourth straight year, a statistic Republicans frequently use to accuse the Obama administration of overspending.

(Reporting by Doug Palmer; Editing by Neil Stempleman)

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Comments (2)
So half of the reduction is because we sped up payments by a month. Did we adjust last year’s numbers up by that amount, or just report last year’s numbers? Essentially, increased tax revenue covered the entire reduction, which is half of what is reported. Great job guys. How’s the kool-aid?

Aug 10, 2012 3:32pm EDT  --  Report as abuse
Krowster wrote:
Given the worthless manderings of this Congress, who should have been fired, and if their pays had been restricted to actual labor, we would be in the black today. This Congress is long overdue for collecting their retirements pays, hopefully, from the same shattered investments they helpd destroy this country.

Aug 10, 2012 4:19pm EDT  --  Report as abuse
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