The U.S. government’s budget deficit dropped sharply in fiscal 2013, pushed to its lowest level in five years by record revenues and modestly lower spending.
For the fiscal year that ended on Sept. 30, the deficit was $680 billion, or 4.1% of gross domestic product, the Treasury Department reported late Wednesday. That is the smallest annual shortfall since the $459 billion gap posted in 2008, and 38% below the fiscal 2012 deficit.
The full-year figure includes a surplus of $75 billion for September.
The deficit has fallen mostly due to increased revenues, as well as slightly lower government spending reflecting the across-the-board budget cuts known as the sequester.
Budget receipts hit a record high in fiscal 2013, a Treasury official said. Revenue was $2.8 trillion for the fiscal year, up 13% from 2012.