Federal budget posts declining deficit

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.