The U.S. government posted a budget deficit of $203.5 billion in February, a 12% drop from the deficit reported a year earlier, according to the Treasury. 

The further narrowing of the gap between spending and revenue last month indicates the deficit is on track to improve this year, the Treasury suggested. 

The improvement in February resulted from a 19% increase in revenue from last year.

For the five-month period stretching from November to February, the U.S. ran a deficit of $494 billion, down $87 billion from a year earlier.