US budget deficit hits $134bn

The US federal government’s budget deficit widened to $134bn (£84.6bn) in August, up from $90.5bn a year ago, figures showed yesterday. The jump in the gap between government spending and payments was in part due to calendar differences with 2010 that saw income accounted for in July instead of August this year. The deficit for the year to date rose to $1.23 trillion, but this was still $122bn lower than the same point last year. Analysts said the deficit may stop growing soon as spending cuts and better tax collection took effect.