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home ... congress ...U.S. has April surplus but spending strains grow

WASHINGTON, May 12 (Reuters) - The U.S. government posted a $159.3 billion surplus in April, helped by the mid-month deadline for individuals meeting 2007 tax obligations, but it was down from the prior year's surplus, the Treasury Department reported on Monday.

In April 2007, the surplus was $177.7 billion.

In the first seven months of fiscal 2008, which ends Sept. 30, the government's budget deficit swelled by 88.4 percent to $152.2 billion, from $80.8 billion in the first seven months of fiscal 2007.

The latest figures point to growing strain on the budget, which is poised to face a deeper deficit as payments under an economic stimulus program agreed by Congress and the Bush administration get into full swing.

The Congressional Budget Office forecast in March that the fiscal 2008 deficit likely will hit $396 billion. Defense spending keeps climbing as the administration seeks more funds for wars in Iraq and Afghanistan.

In the first seven months of fiscal 2008, Defense Department spending rose by about $34 billion from the comparable period in fiscal 2007 to $341.1 billion.

In April alone, receipts primarily from taxes totaled a record $403.8 billion, up from $383.6 billion in April 2007.

But outlays also set a record at $244.5 billion, compared with $205.9 billion in April last year. Outlays are due to swell in coming months as tax rebates of up to $600 for individuals and $1,200 for married couples that are part of the administration's economic stimulus plan start flowing in earnest.

The program, intended to give the flagging economy a boost, got started at the end of April and the Treasury Department said that $3.4 billion had been issued. The stimulus package is suppose to pump about $152 billion into consumers' hands to try to keep the consumption-driven economy from stalling. (Reporting by Glenn Somerville; Editing by Leslie Adler)

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