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Geithner says US should bring down trillion dollar fiscal deficit and debt

Published on Oct 13, 2012 10:07 AM

TOKYO (AP/AFP)- The United States is making progress on getting its fiscal house in order though much more needs to be done, Treasury Secretary Timothy Geithner told fellow financial leaders on Saturday.

The comment came just hours after the US government announced that the budget deficit had topped US$1 trillion (S$1.2 trillion) for a fourth straight year despite a modest improvement thanks to stronger economic growth.

"It is important that we in the US enact a balanced framework to bring down our fiscal deficit and debt over several years, while continuing to provide support for jobs and growth in the short term," Mr Geithner told a meeting of the International Monetary and Financial Committee during the annual meeting of the IMF and World Bank, which is being held in Tokyo.

The Treasury Department said Friday that the deficit for the 2012 budget year totaled US$1.1 trillion, though a 6.4 percent increase in tax revenues thanks to stronger growth helped contain the deficit.

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