The Treasury Department announced a deficit of $98 billion for July, according to a report (link opens as PDF) released today.
After June's report clocked in as the largest surplus for a single month in five years, July's report proved just slightly off the money, with analysts expecting a $96 billion deficit.
Overall receipts (inflow) totaled $200 billion for July, while total outlays clocked in at $298 billion.
So far this fiscal year, the deficit has totaled $607 billion, according to the Treasury. That's 62% of the nation's total deficit for the same period in the previous fiscal year. The country's fiscal year starts Oct. 1. While receipts so far this year are up 14% seasonally adjusted over the same period the previous year, government spending has taken only a slight 3% dip.
The Congressional Budget Office has forecast that the annual deficit will be $670 billion when the budget year ends Sept. 30, far below last year's $1.09 trillion. It would mark the first year that the gap between spending and revenue has been below $1 trillion since 2008. Steady economic growth, higher taxes, lower government spending and increased dividends from mortgage giants Fannie Mae and Freddie Mac have helped shrink the deficit.
-- Material from The Associated Press was used in this report.