| NEWS ARCHIVES |
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| US budget deficit widens in February |
| 11 Mar 2010 |
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The US government registered a record budget deficit in February despite rising revenues, setting a record 17th straight month in the red.
The February budget shortfall was 220.9 billion US dollars, a 14 percent rise from a year ago and the biggest monthly gap on record.
The reading, however, was slightly better than the consensus analyst forecast of a deficit of 222 billion dollars.
The widening budget gap in February was led by a 17 percent jump in government spending, which hit 328.4 billion US dollars, a record for the month of February.
The record monthly number came after two consecutive months of shrinking gaps that had left the January deficit at 42.6 billion dollars.
Spending surged notably because of tax credits to individuals and businesses, part of a three-year budget stimulus plan launched in February 2009.
On the plus side, government revenues rose on an annual basis in February for the first time since April 2008.
Revenues climbed 23 percent to 107.5 billion US dollars, largely on the back of stronger income from business tax and customs receipts.
US President Barack Obama has vowed to reduce the deficit, beginning the following year. |