WASHINGTON, Sept 21: The US government ran a smaller budget gap in August than in the same month a year ago, sending the year-to-date deficit over $200 billion with one month left in the fiscal year, the Treasury Department said on Friday.

In its monthly look at the government’s bottom line, the Treasury said August posted a $54.71 billion deficit, narrowing from August 2001’s $79.99 billion shortfall.

The number was in line with forecasts by private and government analysts.

Revenues were up slightly in comparison with August 2001, while outlays fell sharply. Both reflected one-time factors in the timing of federal benefit payments and income tax rebate checks in August 2001.

With one month to go, the budget remains on track to post its first deficit since 1997. Through August, the government was $200.18 billion in the red, a reversal of the $91.77 billion surplus in the same period last year.

The government’s fiscal year ends on Sept. 30. The White House’s Office of Management and Budget has said it anticipates a $165 billion deficit for the year, while the Congressional Budget Office is projecting a slightly smaller gap.—Reuters