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

DATE: WEDNESDAY, March 22, 1995                   TAG: 9503220066
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

U.S. DEFICIT FALLS 20% FROM 1994

The federal budget deficit for the first five months of fiscal 1995 reached only $94.08 billion in February, 20 percent below the same period last year.

The Treasury Department said Tuesday the government collected $521.85 billion since Oct. 1, 8 percent more than the $483.31 billion during the first five months of fiscal 1994.

At the same time, it said spending also rose, but only 2.5 percent, to $615.93 billion from $601.14 billion the previous fiscal year. The deficit is the difference between income and outlays.

Analysts attribute the deficit improvement to a stronger economy, which generates more revenue, and federal laws that imposed caps on spending.

The Clinton administration forecasts the fiscal 1995 deficit will be $192.5 billion, down from $203.2 billion in fiscal 1994 and the record $290.4 billion in fiscal 1992.

It is projected the deficit will begin to rise in fiscal 1996, however, because of rising health care costs and government benefits.

In February, the government posted a $37.99 billion imbalance, 8.6 percent smaller than the $41.57 billion gap a year earlier. Revenues totaled $82.54 billion, and spending was $120.54 billion.

Once again, the biggest spending categories were the military, Social Security and other programs of the Department of Health and Human Services, and interest on the national debt.

Military spending totaled $20.30 billion in February and $102.14 billion so far this year. It is predicted to total $260.27 billion for the entire fiscal year.

Social Security payments amounted to $27.62 billion for the month and $133.67 billion for the year. They are expected to total $336.15 billion for the year.

Other Health and Human Services payments, including Medicare and Medicaid, totaled $25.15 billion in February and $130.87 billion for fiscal 1995 so far. They are projected to total $328.71 billion this year.

Interest on the national debt amounted to $19.26 billion for the month and $141.29 billion so far this year. Interest, projected to total $333.7 billion for the entire year, represented 16 percent of the government's outlays in February.

by CNB