THE United States's yawning annual budget deficit narrowed in April as government coffers brimmed with the largest monthly surplus in five years, official data shows.
The federal budget had a surplus of$US112.9 billion ($A112.39 billion) forthe month of April, astax payments surged ahead the mid-month due date for annual income tax filings for 2012, according to Treasury Department numbers released on Friday.
The surplus was almost double the$US59.1 billion surplus registered in April 2012.
Over the first seven months of the fiscal year, the US budget deficit was $US487.6 billion, 32 per cent smaller than the October-April 2012 period.
Revenues leaped 28 per cent in April froma year ago, to$US406.7 billion, helped in part by January 1 increases inpayroll and other taxes.
Expenditures fell a hefty 13 per cent to$US293.8 billion in the second month of severe "sequester" spending cuts, aimed at slashing $US85 billion through September.
"The improved budget deficit will give the Treasury more wiggle room tofinance government programs should Congress fail to raise the debt ceiling whenthe current suspension of this limit on government borrowing expires onMay 19," said Sal Guatieri of BMO Capital Markets.
