WASHINGTON (AP) The federal budget deficit grew to $141.7billion at the end of July, dramatically below last year's recordlevel of red ink, the government said Friday.
At the same point in 1986, with two months left in the fiscalyear, the deficit was $189 billion, 25 percent ahead of the 1987pace. Although government spending is up 3.7 percent so far thisyear, revenues have increased by 10.6 percent, thus easing thedeficit.
The Treasury Department said government spending stood at $843.2billion for the first 10 months of the fiscal year and revenuestotaled $701.5 billion, leaving a shortfall of $141.7 billion.
The improvement for this fiscal year, which ends on Sept. 30, isattributed to the overhaul of the tax code and a resulting one-timesurge in revenue last April.
Because of the higher-than-expected tax revenues, the Reaganadministration on Monday cut its estimate for the deficit this yearfrom a forecast of $173.2 billion made last January when thepresident submitted his budget down to $158.4 billion.
That is well below last year's $220.7 billion record, but stillabove the $144 billion target of the Gramm-Rudman deficit reductionlaw.
The administration is warning that deficits will widen again in1988 and 1989 unless Congress cuts spending.
The government spent $86.5 billion and took in $64.2 billion inrevenue in July, for a monthly deficit of $22.3 billion, much higherthan last month's deficit of $420 million.
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