Federal Deficit Below Last Year's Record [View All]

[Yo_Mama_Been_Loggin]

I'm sure the lowered expectation * administration considers this progress.

By ANDREW TAYLOR, Associated Press Writer



WASHINGTON - The federal deficit hit $319 billion for the budget year that just ended, down significantly from last year's record red ink, although a surge in Katrina-driven spending threatens to drive the shortfall up again.

The improvement from the record $412 billion recorded in the 2004 budget year, which the Treasury Department reported on Friday, is largely due to a surge in federal revenues from an improving economy.

The figures were released three days before Congress returns from a recess and commences a struggle to cut $35 billion from federal benefit programs over the next five years to help defray hurricane recovery costs. Friday's deficit figures underscored that even if lawmakers agree to such savings, they would have a barely visible effect on the overall red ink figure.

Despite the improvement from last year's budget gap, the 2005 shortfall was still the third-highest ever recorded. The government's 2005 budget year ended on Sept. 30.

http://news.yahoo.com/s/ap/20051014/ap_on_bi_ge/federal_deficit