5/12/2011

This year's deficit continues to outpace last year's

More bad news on the deficit.

The U.S. spent $40.49 billion more than it collected last month, a Treasury Department report said Wednesday.

The monthly deficit was smaller than April 2010's shortfall of $82.69 billion. Tax refunds last month fell while non-withheld tax receipts climbed.

Still, the deficit was the 31st monthly shortfall in a row. With nine months of fiscal 2011 elapsed, the government has spent $869.90 billion more than it has collected—higher than $799.68 billion for the same period a year earlier.

"We expect that as the labor market improves further throughout this year, the increases in jobs will maintain the growth in individual income tax revenues," Barclays Capital economist Theresa Chen said in a note to clients. "However, the spending side of the fiscal balance remains precarious. We look for spending to increase at a gradual pace throughout the rest of this year."

The government's fiscal years begin Oct. 1. So far in fiscal 2011, the U.S. has collected $1.31 trillion and spent $2.18 trillion. . . .

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