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Modest economic growth has also boosted federal tax receipts. Last year, the economy grew at a modest 2.2 percent and generated an average of about 180,000 jobs a month. Job growth has topped 200,000, however, for the past four months. More jobs mean more income, which generates more tax revenue for the government. The monthly budget update from the Treasury Department comes as both the White House and GOP leaders in Congress are renewing their efforts to reach agreement on a broad deal to reduce the deficit. But so far, there are few signs of progress. Obama met with House Republicans Wednesday and plans to meet Senate GOP leaders Thursday. The deficit is the amount the government must borrow when its expenses exceed its revenue. Each month's deficit is volatile and can be affected by calendar quirks that shift government spending or revenue from one month to another. The deficits hit a record $1.41 trillion in budget year 2009, which began four months before Obama took office. That deficit was due largely to the worst recession since the Great Depression. Tax revenue plummeted. And the government spent more on stimulus programs. The budget gaps in 2010 and 2011 were slightly lower than the 2009 deficit as a gradually strengthening economy generated more tax revenue. President George W. Bush also ran annual deficits through most of his two terms in office after he won approval for broad tax cuts and launched wars in Afghanistan and Iraq. The last time the government ran an annual surplus was in 2001.
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