US government records another budget deficit in February

Save Story
Leer en español

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WASHINGTON (AP) — The federal government ran another budget deficit in February, and the gap would have been bigger if tax refunds had been processed faster.

The Treasury Department reported Friday that the deficit came in at $192 billion last month, little-changed from a $192.6 billion deficit in February 2016. This year's budget hole would have been deeper. But the Internal Revenue Service is required by a new law to delay tax refunds to those who file for the earned income tax credit while it looks for fraud. The credit reduces taxes or provides refunds to low-income Americans.

For the first five months of the fiscal year, the deficit — the gap between the government's revenues and spending — came in at $349 billon, down from $351.3 billion a year earlier.

The Congressional Budget Office forecasts that the annual deficit will slip to $559 billion this year from $587 billion in fiscal year 2016. The CBO forecast does not take into account President Donald Trump's budget plans.

Trump has called for a program of tax cuts for businesses and individuals and increased government spending in such areas as repairing the nation's aging infrastructure

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Most recent Business stories

Related topics



    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the Trending 5.
    By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

    KSL Weather Forecast