WASHINGTON, May 12 (UPI) -- The U.S. government reported a budget surplus of only $107 billion in April, less than the figure reported for the same month last year.
Revenues exceeded expenditure by $106.9 billion as compared to $112.9 billion for the April 2013, according to the Treasury Department. April is usually a surplus month as the Treasury receives tax payments from individuals and businesses.
Despite the smaller surplus for the month, the deficit continued to drop for the seventh month. For the fiscal year beginning Oct. 1 2013, the deficit is $306 billion, which is 37 percent or $181 billion lower than it was for the same period in the previous year.
Revenues were two percent higher than in April 2013 as the government received $166 billion was from individuals' payroll taxes and income taxes, marking a three percent increase. Corporate taxes totaled $43 billion, a six percent increase from the previous year.
Spending was five percent higher with the cost of Medicare, veterans' affairs and other items rising. Defense spending rose by only one percent.
A faster rate of hiring and improved corporate performance are expected to help shrink the deficit, which had been battered after the financial crisis.the budget gap is expected to be $492 billion, much smaller than the $1.4 trillion in 2009, by the end of the fiscal year.
According to the Congressional Budget Office, the deficit for 2014 will 2.8 percent of the GDP, compared to 4.1 percent in 2013 and the lower than the 3.1 percent average of the last forty years.