The US budget deficit rose in November, pushing the country closer to a limit on government borrowing that has complicated negotiations in Washington over how to slow austerity measures scheduled for January. The Treasury said on Wednesday the November deficit was $172 billion, larger than economist forecasts for a $150 billion gap and up from a $137 billion deficit in November of 2011.

Growth in spending outpaced rising receipts, deepening the deficit. Outlays grew to $334 billion from $290 billion in the same month last year while receipts rose to $162 billion from $152 billion. The growth in spending appeared to be partly driven by a one-time calendar event in which Medicare healthcare payments to the elderly scheduled for this month took place in November because December 1 fell on a Sunday. November's figure was up $19 billion from the month before. Nonetheless, the Treasury is on track to hit its $16.4 trillion debt limit by year's end. As of Monday, the Treasury was $62.5 billion below the debt limit. It has a number of emergency manoeuvres it can employ to keep borrowing into early 2013.

Copyright Reuters, 2012