Federal Deficit Lower

The Federal Deficit is running sharply lower through the first nine months of this budget year as the growth in revenues continues to outpace spending growth. The Treasury Department reported that the government ran a surplus of $27.5 billion in June, up sharply from $20.5 billion surplus recorded in June 2006. The government normally runs a surplus in June, a month when individual taxpayers and corporations make quarterly payments to the IRS. With this surplus, the total deficit through the first nine months of the budget year, is down 41.4 percent from the same period a year ago. Then the deficit totaled $206.5 billion. The Bush Administration projected a new deficit projection of $205 billion, down significantly from $244 billion it forecast in February. This reflects the fact that revenue growth has continued to come in at a higher than expected level.