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U.S. Budget Gap Shrinks by More Than Half So Far in Fiscal Year

The U.S. budget deficit shrank by more than half in the first five months of the latest fiscal year as government pandemic spending wound down and revenue jumped.

The shortfall in the October-to-February period was $475.6 billion, 55% smaller than the same five months a year earlier, and the least for the timeframe since the fiscal year ended in 2018, according to Treasury Department data released Thursday. The gap narrowed to $216.6 billion last month, compared with $310.9 billion in February 2021.