WASHINGTON, July 12, 2024 (BSS/AFP) - The US budget deficit shrank slightly from a year ago in the first nine months of the fiscal year, on higher tax revenues from individuals and corporations, the Treasury Department said Thursday.

The budget gap narrowed by $125 billion to $1.3 trillion for the October to June period, down from $1.4 trillion in the prior year.

Overall receipts rose by 10 percent year-on-year, while outlays increased by five percent.

Expenses under the Treasury Department rose, largely driven by a 33 percent jump in interest on the public debt as borrowing costs increased.

The $215 billion uptick was just somewhat offset by lower tax credit and spending for pandemic-related programs, a Treasury official told reporters.

Individual income taxes collected came in at $1.9 trillion through June, up from $1.7 trillion last year.

The official noted that part of the increase was influenced by deferred taxes from parts of the country in fiscal year 2023 into 2024.

The amount of corporate income taxes received rose as well from $306 billion to $393 billion over this period.