WASHINGTON (AP) - The federal government reported a rare surplus of $116.5 billion in June, the largest in five years. The gain kept the nation on track for its lowest annual deficit in five years.
The surplus was due in part to $66.3 billion in dividend payments from Fannie Mae and Freddie Mac. The mortgage giants were taken over by the government at the height of the financial crisis in 2008 and are now repaying taxpayers for the support they received.
Through the first eight months of the budget year the deficit has totaled $509.8 billion. That's $394.4 billion lower than the same period last year.
The Congressional Budget Office forecasts the annual deficit will be $670 billion when the budget year ends on Sept. 30.