US budget deficit down below last year's record

The US federal deficit hit 319 billion dollars for the budget year of 2005 that ended on September 30, down significantly from the record red ink in last fiscal year, the US Treasury Department reported on Friday.

The department said that the improvement from the record high deficit of 412 billion dollars recorded in the 2004 budget year is largely due to a surge in federal revenues from an improving economy.

The figures were released three days before the US Congress returns from a recess and commences a struggle to cut 35 billion dollars from federal benefit programs over the next five years to help defray hurricane recovery costs.

Despite the improvement from last year's budget gap, the shortfall in fiscal year of 2005 was still the third-highest ever recorded in the US history.

Source: Xinhua