US budget deficit on track to exceed $1 trillion

By MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON (AP) - The government is taking in more tax revenues as the economy improves, but not nearly enough to keep the federal budget deficit from exceeding $1 trillion for a third straight year.

The Treasury Department says the deficit for April dropped to $40.5 billion, half the imbalance from the same month last year. Tax receipts were up 45 percent this April compared to a year ago.

Still, the deficit is on pace to grow to $1.4 trillion in this budget year, nearly matching the record $1.41 trillion deficit hit in 2009. That's putting pressure on Congress and President Barack Obama to agree on a long-term plan to cut the deficit. But the parties disagree over whether that should be done through spending cuts, tax increases, or some mix of both.

(Copyright 2011 by The Associated Press. All Rights Reserved.)