Published July 12, 2012
The U.S. government reported a $60 billion budget deficit in June and is on track to hit the federal debt limit before the end of the year, the Treasury Department said on Thursday.
Treasury Secretary Timothy Geithner has forecast the United States would reach the $16.4 trillion debt limit, or the amount it is legally allowed to borrow, after the November presidential election and before the end of the year.
Although the U.S. Treasury pulled in $260 billion in receipts in June -- the highest level for June since 2007 -- government outlays rose to $320 billion from $293 billion last year.
For the first nine months of fiscal 2012, the government's budget gap totaled $904 billion, $67 billion below the corresponding year-ago deficit, the Treasury Department said.
The U.S. budget deficit is on track to exceed $1 trillion for the fourth straight year and Republicans have used this statistic to accuse the Obama administration of overspending.
(Reporting By Rachelle Younglai; Editing by Chizu Nomiyama)