July U.S. Budget Deficit Narrowed to $165 Billion

The U.S. government posted a smaller budget deficit in July compared with the same month last year, helped by a gain in corporate tax revenue as the economy recovered from the worst recession since the 1930s.

The excess of spending over revenue totaled $165 billion last month following a shortfall of $180.7 billion in July 2009, according to a Treasury Department report issued today in Washington. The gap for the fiscal year that started in October was $1.17 trillion compared with $1.27 trillion last year at the same time.