Federal Deficit Drops

Year-to-date deficit stands nearly $94 billion below last year's level

The U.S. posted a smaller than expected $52.79 billion budget deficit in July as revenues swelled, a Treasury Department report showed Wednesday.

Wall Street analysts had expected the government to post a $57 billion budget gap in July, following a $69.16 billion deficit in the same month in 2004.

In its monthly budget statement, the Treasury Department said government receipts rose to $142.09 billion in July � a record high for the month � compared to $134.42 billion in July last year. Outlays fell to $194.88 billion from $203.58 billion in July 2004.

For the fiscal year to date, the government has recorded a cumulative $302.59 billion budget deficit, well below the $396.32 billion gap it recorded in the first 10 months of fiscal 2004, which ended Sept. 30.