Federal budget posts declining deficit

The federal budget deficit for March was $65.4 billion, the 18th straight month of shortfalls as the nation's economy struggles back to life. 

Year-over-year figures improved from $191.6 billion in March 2009 as spending decreased for the Troubled Asset Relief Program, which bolstered failing financial firms beginning in fall 2008, according to figures released Monday by the Treasury Department. 

The Treasury has reported $10.5 billion in revenue or an 8.5 percent return on investment on its TARP assets. 

Congress and the White House are facing $1.6 trillion in a federal deficit this year as the federal government attempts to balance spending to spark a recovery with rapidly growing shortfalls.

The nonpartisan Congressional Budget Office estimated a budget deficit of $62 billion as spending has declined for TARP and on federal deposit insurance. CBO's report showed a sharp rise in spending on unemployment benefits and other entitlement spending has continued to negatively effect the budget. 

Spending on Social Security rose to $370.9 billion, Medicare and Medicaid programs were up to $417.7 billion for fiscal 2010, while spending on TARP fell to $5.9 billion from $114.7 billion. 

Revenue increased for the second straight month to $153.4 billion in March, an increase of 19 percent. That's compared with receipts of $128.9 billion a year ago, according to today's report. 

Overall, spending for March dropped 32 percent as compared with March 2009, to $218.7 billion.