-->WASHINGTON, Nov 10 (Reuters) - The U.S. government began fiscal 2005 with a budget shortfall, right after posting a record $412.28 billion budget gap for all of the 2004 budget year, a report on Wednesday showed.

The Treasury Department, in its monthly budget statement, said the October deficit was $57.29 billion. That was close to Wall Street and Congressional Budget Office analysts' expectations, but smaller than October 2003's $69.55 billion gap.

The 2004 deficit had previously been reported as $412.55 billion. The federal budget year starts on Oct. 1.

Receipts in October 2004 totaled $136.90 billion, up 0.8 percent from $135.83 billion in the same month a year ago.

At the same time, spending amounted to $194.19 billion, down 5.4 percent from the $205.37 billion spent in October 2003.

Social Security accounted for the largest portion of government spending in October, at $41.75 billion. Defense spending was second, with $36.27 billion.

On the receipts side of the ledger, individual income taxes totaled $64.53 billion in October, down a bit from the $67.64 billion in October 2003. Business taxes advanced sharply, to $7.69 billion compared with $3.67 billion in October 2003.

The deficits of recent years, which the Bush administration largely blames on the 2001 recession and increased defense and security spending, have pushed the government's debt right up to the congressionally set $7.384 trillion limit.

Earlier Wednesday, Treasury cast doubt on a regular auction of four-week bills, which is scheduled to be announced on Monday and auctioned on Tuesday. Treasury said it did not have authority to issue the bills under the debt ceiling. The likely formal postponement of the auction on Monday would mark the first time this year the debt limit impasse has affected the debt securities' issuance schedule.

However, Congress is expected back in town next week and is likely to approve a debt hike increase in a"lame duck" session.