BBC Home
Explore the BBC
BBC News
Launch consoleBBC NEWS CHANNEL
Last Updated: Thursday, 10 August 2006, 20:49 GMT 21:49 UK
US budget deficit narrows in July
Person counting dollars
Taxes are helping to boost the government's coffers
The US has posted a lower than expected budget deficit for July, helped by increased tax collections.

The deficit came in at $33.2bn (25.8bn), sharply lower than the $53.4bn deficit posted in July 2005.

Government spending during the month fell to $192.9bn from $195.5bn a year ago, while tax receipts surged to $159.8bn compared with $142bn.

Receipts are at record levels of $1.97 trillion for the first 10 months of the financial year, the Treasury said.

The narrowing of the deficit reflects a surge in government revenues from higher corporate and individual tax receipts.

Further falls?

The government now predicts the deficit for the financial year - which ends in September - will come in at $296bn, significantly lower than previous estimates.

In February, the administration had forecast a deficit of $423bn.

Healthy economic growth has helped boost the nation's coffers and although government spending is still rising at 7.8%, the rate of increase has slowed.

The US has recorded consistently high deficits in recent years, leading critics of the Bush administration to accuse it of fiscal indiscipline.

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific