US budget deficit crosses $1 trillion-mark for 4th straight year

US budget deficit crosses $1 trillion-mark for 4th straight year Zeebiz Bureau

Washington: The US budget deficit has crossed USD 1 trillion-mark for the fourth year in a row but a modest improvement in economic growth helped narrow the gap by USD 207 billion compared with last year.

The Treasury Department said Friday the deficit for the 2012 budget year was USD 1.089 trillion, narrower than last year's deficit of USD 1.297 trillion.

Tax revenue rose 6.4 percent from last year to more than USD 2.4 trillion, helping contain the deficit.

The deficit equaled 7.0 percent of US economic output, down from 8.7 percent last year, the department said.

The Obama administration spent USD 3.538 trillion in the 2012 fiscal year, 1.7 percent less than last year, the Treasury said.

Strong tax collections from Americans and businesses pushed receipts up to USD 2.449 trillion in 2012, up 6.4 percent from last year, according to the Treasury Department.

The government posted a September budget surplus of USD 75 billion mostly because monthly benefit payments were made in August due to a holiday weekend.

With Agency Inputs