US budget deficit rises to record $120 billion in February

The US budget deficit widened to $120 billion in February, a record for the month, but the cumulative deficit for the first five months of fiscal 2007 fell 26 percent from the same period last year, the US Treasury Department said on Monday.
The February deficit matched the forecast made by Wall Street analysts in a Reuters poll. It was slightly higher than the February 2006 deficit of $119.2 billion. Receipts were $120.3 billion in February, while spending was $240.3 billion. The February deficit pushed the cumulative deficit for fiscal 2007 to $162.2 billion. The United States ran a $38.2 billion budget surplus in January.
Both individual and corporate tax receipts continued to run well ahead of fiscal 2006 levels. Individual tax receipts totalled $443.8 billion versus $393.3 billion in the first five months of fiscal 2006. Cumulative corporate tax receipts totalled $113.9 billion, compared to $94.3 billion in the same period last year.
Treasury Department outlays rose notably during February, driven by Internal Revenue Service payments stemming from the earned income and child tax credits.