The flow of US government red ink slowed in August but remained on track for a second straight annual record, a Treasury Department report on Monday showed.
The Treasury said the government ran a $41.14 billion deficit between receipts from taxes and other fees, and spending in August, narrowing from the $76.59 billion deficit in August 2003. The August deficit, which brings the year-to-date shortfall to $436.91 billion with one month to go in the budget year, was slightly larger than estimates of a $40 billion gap by both private sector economists and the Congressional Budget Office.
Analysts had expected the gap to narrow sharply in August, largely because of shifts in the timing of some government payments and because last summer the government paid out billions in advance child tax credits.
With a small budget surplus expected in September, the final annual budget deficit - to be released sometime in October - is expected to top $400 billion, which would surpass the $374.27 billion record in 2003.