Deficit for current budget year falls to lowest level in 4 years

WASHINGTON (AP) _ The federal deficit has improved significantly in the first three months of the new budget year, helped by a continued surge in tax revenues. <br/><br/>In its monthly budget report, the

Friday, January 12th 2007, 1:24 pm

By: News On 6

WASHINGTON (AP) _ The federal deficit has improved significantly in the first three months of the new budget year, helped by a continued surge in tax revenues.

In its monthly budget report, the Treasury Department said Friday that the deficit from October through December totaled $80.4 billion, the smallest imbalance for the first three months of a budget year since 2002. The budget year ends Sept. 30.

Tax collections are running 8.2 percent higher than a year ago while government spending is up by just 0.7 percent from a year ago. Last year's spending totals were boosted by significant payments to help the victims of the Gulf Coast hurricanes.