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Treasury: Monthly deficit dips to $129 billion

The federal government ran a deficit of nearly $129 billion in August, lower than the shortfall recorded in the same month last year, the Treasury Department announced Thursday.

Through the first 11 months of fiscal 2014, the government’s deficit was $589 billion, a 22 percent drop compared to the same time period last year.

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The deficit, therefore, remains on track to be the lowest since 2008. August’s deficit is $19 billion less than the deficit recorded in August 2013.

Earlier this month, the nonpartisan Congressional Budget Office (CBO) projected the total 2014 budget deficit to be $506 billion, or 2.9 percent of gross domestic product. 

In a report from April, the CBO had projected the deficit would top out at $492 billion on Sept. 30. The agency increased its projections, however, because receipts from corporate income taxes are less than it originally expected. 

The fiscal year ends on Sept. 30, and lawmakers on Capitol Hill are trying to pass a short-term spending bill before fiscal 2015 begins on Oct. 1.

House Appropriations Chairman Hal Rogers (R-Ky.) released a budget measure this week, but debate has been delayed as members of Congress weigh whether it should contain an authorization to fund rebels in Syria.