August 7, 2012 / 7:38 PM / 6 years ago

Budget deficit running slightly lower than last year: CBO

WASHINGTON (Reuters) - The U.S. federal government will report a budget deficit of about $975 billion for the first 10 months of the fiscal year, slightly less than the $1.1 trillion budget gap during the same period last year, the Congressional Budget Office said on Tuesday.

The deficit estimates appear in line with the latest projection by the White House of a $1.2 trillion deficit for the entire fiscal year ending on September 30. The CBO in January projected a $1.1 trillion deficit for the year and will update that forecast and provide an estimate for next year’s budget deficit in its economic outlook to be released on August 22.

The non-partisan budget agency for Congress said in its monthly budget report released on Tuesday that revenues were 6 percent higher in the first 10 months of fiscal year 2012, which began on October 1, 2011, than they were during the same period a year ago.

In a potentially good sign for the economy, tax receipts from corporations and individuals were higher so far this year, CBO said. Government spending for the first 10 months increased by less than one percent compared to the same period last year, CBO said.

The U.S. deficit for the month of July was $71 billion, about $58 billion less than the shortfall recorded a year ago, the CBO said. But the numbers last month were influenced by a shift in some government payments to June from July. Without those payment shifts, the deficit would have been $22 billion less than the shortfall in July 2011.

The U.S. Treasury Department will report the actual revenue and spending figures through July on Friday.

Reporting By Donna Smith; Editing by Cynthia Osterman

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