Helped by increasing revenues and spending restraint, the federal government is on track to record the lowest annual deficit in six years. The Treasury Department issues its report Tuesday at 2 p.m. Eastern.
JULY DEFICIT: The Congressional Budget Office expects the July deficit to total $96 billion, compared with a deficit of $97.6 billion a year earlier.
LESS RED INK: Through June, the deficit for the budget year that began Oct. 1 totaled $365.9 billion, 28.2 percent below the same period a year ago.
In its latest monthly budget review, CBO said it believed the deficit for the current budget year would be around $500 billion. That would be slightly higher than the $492 billion it estimated in April but it would still be the lowest deficit since 2008 when the deficit totaled $458.6 billion, a record high for that time.
With the onset of the Great Recession, deficits soared to unprecedented levels, exceeding $1 trillion for four consecutive years. Tax revenues fell during that period, while government boosted spending in an attempt to stabilize the financial system and provide relief to people who had lost jobs.
The yearly deficit peaked at $1.4 trillion in 2009, dropping to $680.2 billion last year.