THE ECONOMY

Budget Deficit Shrinks: The federal government’s budget deficit narrowed to $2.5 billion in June, down 95% from May’s record imbalance and 78% less than the gap posted for the same month a year ago, the Treasury Department said. The modest shortfall between what the government spent and what it received last month was dwarfed by a $53.35-billion gap in May. Tax receipts and other revenue rose sharply in June to $103.39 billion from $63.56 billion in May, a traditionally slow month for tax revenue. But June receipts were still below the $110.60 billion of June, 1990.