CBO: Deficit Tops $1 Trillion for 4th Straight Year

October 5, 2012 - 12:40 PM

deficit

(AP Image)

(CNSNews.com) – The Congressional Budget Office (CBO) reported that the federal budget deficit has exceeded $1 trillion for the fourth year in a row, coming in at $1.1 trillion in fiscal year 2012 – or 7.0 percent of the economy.

“The federal government’s fiscal year 2012 has come to a close, and CBO estimates -- in its latest Monthly Budget Review -- that the federal budget deficit for the year was about $1.1 trillion, or 7.0 percent of gross domestic product (GDP),” the CBO reported.

“Although the deficit is approximately $200 billion lower than the shortfall recorded in 2011, fiscal year 2012 marks the fourth year in a row with a deficit of more than $1 trillion,” reported the CBO.

The $1.1 trillion deficit was lower than in previous fiscal years due to higher revenues and lower spending, the CBO said. Revenues were up 6 percent over FY 2011 while spending was down 1.6 percent.