According to the latest figures released, the US government has recorded its highest budget surplus in a period of five years at $116.5 billion during the month of June.

The data showed that the tax receipts were higher than expected in the US economy as it shows signs of a strong recovery. Government spending also fell 47 per cent mainly due to a package of spending cuts and tax increases that were introduced in January. Government owned mortgage firms, Fannie Mae and Freddie Mac generated payments of $66.3 billion during the month.

The Congressional Budget Office forecasts shows that the economy is expected to record an annual deficit of around $670 billion till 30 September. Increasing level of debt would mean that the government might against reach its debt ceiling and might be forced to borrow to pay for its obligations. The Obama administration will have to get an approval form the US Congress to increase the debt limit in the US economy.

The government has collected $2.09 trillion in revenue during the first eight months of this budget year, which about 1 per cent higher than the first eight months of the previous budget year.