Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, November 23, 1994                   TAG: 9411230119
SECTION: BUSINESS                    PAGE: C6   EDITION: METRO 
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON                                 LENGTH: Short

FEDERAL DEFICIT SHRINKING

The Treasury Department reported Tuesday that the new fiscal year began in October with a $32.44 billion deficit, down 28.2 percent from $45.42 billion a year ago.

For the previous fiscal year that ended Sept. 30, the deficit fell to $203.4 billion, down from $255 billion in fiscal 1993. A third straight annual decline in the deficit would make it the first time that has happened in more than 40 years.

While the October figures were encouraging and better than analysts predicted, economists said the size of the deficit was held down by outlays in September that normally would have been made in October.

Spending totaled $121.5 billion in October, down 2.1 percent from $124.1 billion of a year ago. Outlays were $131.9 billion in September. Revenue totaled $89 billion last month, up 13.2 percent from October 1993. Receipts were $135.9 billion in September.

The revenue figure was helped by a payment of $330 million from Saudi Arabia, covering more than half the cost of October's U.S.-led military deployment in the Persian Gulf. Kuwait is believed to be paying about 40 percent of the cost.