Budget deficit rises in May, nears $1 trillion for year

U.S. government budget receipts continue to reflect the contraction effects of the nation's worst recession in more than 25 years.

The federal budget deficit increased slightly in May to $189.7 billion as receipts fell while outlays increased for the bailouts and the stimulus program, the U.S. Commerce Department announced Wednesday. Economists surveyed by Bloomberg News had expected the May deficit to total $180.0 billion.

In May, outlays rose to $306.9 billion, up 6 percent compared to May 2008, while receipts, commonly known as revenue, rose to $117.2 billion, down 6 percent versus May 2008.