US deficit tops $1T for 4th year

WASHINGTON the US budget deficit topped $1 trillion for a fourth consecutive year, but a modest improvement in economic growth helped narrow the gap by $207 billion compared with last year.

The Treasury Department said the deficit for the 2012 budget year totalled $1.1 trillion. Tax revenue rose 6.4 percent from last year to more than $2.4 trillion, helping contain the deficit.

The governments revenue rose as more people got jobs and received income. Corporations also contributed more tax revenue than in 2011.

Government spending fell 1.7 percent to $3.5 trillion. The decline reflected, in part, less defence spending as US military involvement in Iraq was winding down.