America's shrinking deficit

20:59, Feb 12 2014

The US government's deficit through the first four months of this budget year is down 36.6 per cent from a year ago, signalling further improvement in the nation's finances.

The Treasury Department says the deficit for January was US$10.4 billion ($12.4 billion).

For the period from October through January, it totals US$184b. That is down US$106.4b from the same period a year ago and puts the country on track for a further improvement in the budget deficit.

The Congressional Budget Office is projecting that the deficit for the current budget year will decline to US$514b.

That would be the smallest imbalance in six years. The deficit last year was US$680.2b.

Rising tax revenues from an improving economy and government spending constraints are helping to trim the deficit.

Advertisement

AP