U.S. Deficit Grows to $60B in June

FBN's Peter Barnes on the U.S. federal deficit growing to $60 billion during the month of June.

June U.S. Budget Deficit at $60B

Politics Reuters

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.

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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)