April budget gap shrinks considerably from a year ago

WASHINGTON - the received income tax increase helped helped cut the deficit of monthly budget by half in April from last year, issued by the Treasury Department on Wednesday showed the figures.

The budget deficit is 40.5 billion dollars in April, compared to a deficit of 82.7 billion in April 2010, said the Treasury Board.

But the relatively favourable data has not changed the image of an economy heading deeper in debt and a few days from date limit may 16 to hit a ceiling legally set on Government borrowing.

For the first seven months of the fiscal year 2011, which ends September 30, the cumulative deficit grow to 869.9 799.7 billion billion in the comparable period of the previous year.

Deficit figures are a dark backdrop for the current effort by the administration Obama to agree with Capitol Hill legislators on an action plan to reduce the deficit.

The White House said President Barack Obama is going to get directly this week in the exchange of ideas with legislators on the problem in question but said that he would negotiate with them. Even some Democrats and Republicans want the administration to be more aggressive in the reduction of expenditures.

Adding urgency to the talks is limit next Monday to hit a ceiling of debt 14.294 billion, which caps the amount of the country can legally borrow. Republicans want the administration to agree to significant cuts as a price for agreeing to raise the limit.

In April, the budget report shows government spending rose to 330 billion of $ 328 billion in April 2010, and for the first seven months of the year it was up to 2.179 $ trillion in 1999 trillion a year earlier.

On income, received in April increased to 289.5 billion $ 245.3 billion. In this category, revenues from the tax on increased individual income strongly 155,6 billion $ 107.3 billion in April, 2010 - may be a sign of an improving labour market in a strengthening of the economy although the Treasury gave no explanation.

Revenue from the tax on the income of the companies in April acquired 25.1 billion to $ 23.1 billion in April last year less striking than the increase of tax on the income received, but nevertheless on the same upward trend.

April 18 was the deadline for the production of this year for people to pay their taxes the income of 2010 and April is typically a strong month received. For example, the number of revenue April was triple take Government $ 52.8 billion in March.

The Congressional Budget Office, Office of watchdog of the Congress, the forecast for the whole of the fiscal year 2011, the Government will release a huge deficit of 1.4 trillion - a gap between expenditure and revenues that must be met by borrowing for purposes of pay for the wars to distribute pensions.

Simple interest payment due on publicly held the cost of debt - although foreign investors - Government 139,3 billion in April. Which increased by 123.1 billion in April 2010.