The U.S. government started the first month of the 2014 budget year with a smaller budget deficit, signaling further improvement in the nation’s finances at a time when lawmakers are wrestling to reach a deal to keep the government open past January.
The Treasury Department said Wednesday that the deficit in October was $91.6 billion. That’s 24 percent lower than the $120 billion imbalance recorded in October 2012. The deficit is the gap between the government’s tax revenue and spending.
Across-the-board spending cuts and the partial government shutdown helped reduce expenditures last month, the first of the new budget year. Higher taxes and a better economy also boosted revenue.
The October decline comes after the government ran an annual deficit of $680 billion in the budget year that ended on Sept. 30. That was the lowest in five years and the first in that period below $1 trillion.