WASHINGTON — The federal budget deficit is approaching $1 trillion for a fourth straight year, even though the government is collecting more tax revenue than last year.
The Treasury Department said Tuesday that the deficit grew by $124.6 billion in May. That put the deficit through the first eight months of the budget year at $844.5 billion, or 8.9 percent below last year’s imbalance for the same period.
Still, the Congressional Budget Office forecasts that the deficit for the entire 2012 budget year, which ends Sept. 30, will total $1.17 trillion. The deficit recorded in fiscal 2011 was 1.3 trillion. The 2012 number is certain to keep the federal budget near the center of the presidential campaign.
So far this year, government receipts are running 5.3 percent higher than a year ago. A better job market and modest economic growth have led to higher tax revenue.
Receipts in May totaled $180.7 billion, the second-largest tax take ever for May.
Rising tax collections have also helped state governments. U.S. states expect to collect higher tax revenue in the coming budget year that, combined, will top the collections received before the recession, according to the findings of a survey released Tuesday by the National Governors Association and the National Association of State Budget Officers.
The extra tax revenue hasn’t cooled the budget debate in Washington.
President Barack Obama and Republicans remain at odds over how much to spend, where to cut and whether tax increases should be on the table.
