09/11/2014 02:02 EDT | Updated 11/11/2014 05:59 EST

US budget deficit totals $128.7 billion in August, staying on track to be smallest since 2008

WASHINGTON - The federal government ran a lower budget deficit this August than a year ago, remaining on track to record the lowest deficit for the entire year since 2008.

The Treasury Department says the August deficit was $128.7 billion, down 13 per cent from the $147.9 billion deficit recorded in August 2013.

With just one month left in the budget year, the deficit totals $589.2 billion, 22 per cent below last year's 11-month total.

The Congressional Budget Office expects the government to run a sizable surplus in September that will allow the government to close out the budget year with a deficit of $506 billion, the lowest since 2008.

The improvement this year has occurred because of a 7.7 per cent increase in tax revenues that offset a smaller 0.8 per cent increase in spending.