US Economy: US deficit tops $1 trillion

The US budget deficit has topped $1 trillion for a fourth straight year, but a modest improvement in economic growth helped narrow the gap by $207 billion compared with last year.

The Treasury Department said on Friday the deficit for the 2012 budget year totaled $1.1 trillion. Tax revenue rose 6.4 per cent from last year to more than $2.4 trillion, helping contain the deficit.

The government’s revenue rose as more people got jobs and received income. Corporations also contributed more tax revenue than in 2011.

Government spending fell 1.7 per cent to $3.5 trillion. The decline reflected, in part, less defence spending as US military involvement in Iraq was winding down.

Read more: US deficit tops $1 trillion | GulfNews.com