Washington, April 19 (Bloomberg) -- The U.S. government today reported awider budget deficit in March than a year earlier as slower economic growthcaused corporate and personal tax collections to fall. The shortfall grew to $50.7 billion from $35.4 billion in March 2000, accordingto the Treasury's budget statement. While government outlays typicallyexceed revenue in March, the difference was more than the $44.2 billionanalysts had expected. ``When you have more job cuts, the Treasury loses money accordingly,'' saidAstrid Adolfson, an economist at MCM Moneywatch in New York. ``In April,we may not be getting the tax bonanza everybody is hoping for.'' Today's numbers may add fuel to the debate over whether surpluses will belarge enough to allow the 10-year, $1.6 trillion tax cut sought by PresidentGeorge W. Bush. He says a cut will stimulate the economy. The U.S. is still likely to post a surplus in 2001, the fourth in a row, eventhough there is a deficit now. Since the current fiscal year began in October 2000, the Treasury hasaccumulated a budget deficit of $24.8 billion, today's report showed. Thatcompares with a deficit of $35.2 billion for the first half of fiscal 2000. In March, tax revenue, fees and other income fell 4.1 percent to $130.1 billionfrom a year earlier, the Treasury reported today. Federal spending rose 5.7percent last month to $180.7 billion from a year earlier.
Tax Payments Decline
Individual tax payments declined 25 percent in March, to $33.6 billion, from ayear earlier. Corporate tax revenue dropped 8.8 percent to $22.1 billion. Slower growth has trimmed corporate profits and corporate tax payments.Declines in stock values are likely to reduce capital gains. More than 870 companies, a record, warned investors that earnings in the firstthree months of the year would miss expectations, according to FirstCall/Thomson Financial. For fiscal 2000, the Treasury reported a record $236.7 billion budget surplus,following leftover balances of $124.4 billion in fiscal 1999 and $69.2 billion infiscal 1998. The annual deficit peaked in fiscal 1992 at $290 billion. The U.S.government's fiscal year runs from Oct. 1 to Sept. 30. The last time Washington reported three straight budget surpluses was in1947, 1948 and 1949, and the last time it reported a longer stretch wasbetween 1919 and 1930 -- the end of World War I and the start of the GreatDepression. Treasury Secretary Paul O'Neill said today he is optimistic that Congress willpass Bush's budget and tax plan when lawmakers return from recess nextweek. ``I believe next week we will see the House and Senate come together arounda tax relief number that is very close to the president's request,'' O'Neill said inthe text of a speech to the Economic Club of New York. O'Neill's remarks echoed those of Vice President Dick Cheney and otheradministration officials, who have also argued that the full cut will be restored.The Senate voted to reduce the cut to $1.2 trillion over 10 years. Bush said earlier this week his cuts would return about $1,600 a year to atypical American family of four once fully in place in 2006. Democrats say thecut takes too much revenue away from education, defense, the environmentand other federal priorities.