The government looks set to report a smaller deficit this year, on the back of higher tax revenue and lower spending.Treasury figures, which exclude ACC finances, show a deficit of $6.8 billion for the 11 months ended May.That's about $3b below what was forecast in the Budget.The deficit for the year ended June is forecast to be nearly $12b.The tax take was $900 million above forecast, due to higher company and provisional tax payments, and stronger earnings for state owned enterprises.Expenses were $900m less than expected, while net debt was also marginally lower.More to come