Budget deficit on track to exceed $1 trillion

WASHINGTON (AP) — The government is taking in more tax revenues as the economy improves, but not nearly enough to keep the federal budget deficit from exceeding $1 trillion for a third straight year.

The Treasury Department says the deficit for April dropped to $40.5 billion, half the imbalance from the same month last year. Tax receipts were up 45 percent this April compared to a year ago.

Still, the deficit is on pace to grow to $1.4 trillion in this budget year, nearly matching the record $1.41 trillion deficit hit in 2009. That's putting pressure on Congress and President Barack Obama to agree on a long-term plan to cut the deficit.

But the parties disagree over whether that should be done through spending cuts, tax increases, or some mix of both.