Budget deficit about $800 billion, unlikely to hit projected levels

The federal budget deficit stood at $800 billion for the first seven months of fiscal 2010, making it unlikely that the deficit will reach projected amounts. 

Record deficits of more than $1.5 trillion for this year were estimated by the Office of Management and Budget and the nonpartisan Congressional Budget. But with only five months left in the fiscal year, shortfalls are unlikely to reach those levels. 

Right now, the shortfall is running neck and neck with fiscal 2009 levels, according to the Congressional Budget Office's monthly budget review released Friday. 

While outlays and revenues also were below 2009 figures -- 3 percent and 4 percent respectively -- CBO anticipates that revenues and outlays will be greater at the end of the fiscal year than they were last year. 

Tax receipts for individual income taxes were less than expected while receipts of corporate taxes were up about 56 percent over April 2009. 

In April, receipts were down by $20 billion than last year as nonwithheld individual income tax receipts declined as refunds rose by $11 billion, or 19 percent over last year. The increase in refunds occurred in part because there were five Fridays in April 2009, and most refunds are reported on Fridays, the report said. 

But those declines were partly offset by higher revenues from other sources including a $6 billion increase in withheld income and payroll taxes, compared with last April. 

Corporate receipts also were up to $8 billion, including $5 billion in gross receipts from corporations' first quarter tax payments and a decline in refunds of about $3 billion. 

Outlays were $44 billion higher in April this year, partly because $25 billion payments were shifted because May 1 fell on a Saturday. Defense spending was up $4 billion and $3 billion for education in April.