(CNSNews.com) - The federal government ran a deficit of $929 billion in just the first 8 months of fiscal 2011, which began on Oct. 1, 2010, according to the Congressional Budget Office’s monthly budget review for June.
“CBO estimates that the government recorded a deficit of $929 billion for the first eight months of the fiscaly year,” said CBO.
Last year, the government ran a deficit of $935 billion in the first 8 months of the year, according to CBO.
The $929 billion deficit the government ran up in the first 8 months of fiscal year 2011 puts the government on track to hit an annual budget deficit of approximately $1.4 trillion for the fiscal year, which is what the CBO projected this year’s deficit would be in its most recent analysis of President Obama’s budget proposal published April 15.
“CBO now projects that under current law, the deficit for this year will amount to $1.40 trillion,” the CBO said in that analysis.
With $929 billion in deficit spending in the first 8 months of the year, the government was running an average monthly deficit of $116.13 billion. At that pace, it would run an additional $464.5 billion in deficits in the June-Septemper period—bringing the total deficit for the fiscal year to $1.3935 trillion (or approximately the $1.4 trillion predicted by the CBO in April).
At the beginning of fiscal 2011, according to the U.S. Treasury, the debt subject to the legal limit of $14.294 trillion stood at $13.561623 trillion—or $926.76 billion below the limit.
Congress would need to increase the legal debt limit by at least $466.74 billion just to get the government through Sept. 30 (the last day of this fiscal year) and accommodate the $1.3935-trillion annual deficit the federal government is now on pace to incur.
In order to reduce that $466.74 billion in additional deficit spending the government is on track to incur in the last four months of this fiscal year, Congress would need take actions that either increase the tax revenues that come in before Sept. 30 or reduce the spending that the federal government plans to do before Sept. 30.
So far this year, among major categories of federal spending, according to the CBO, net interest on the federal debt has increased the most, and defense and military spending has increased the least. Net interest on the debt was up 16.1 percent from last year; defense and military spending was up only 1.1 percent.
Medicaid, Medicare and Social Security spending followed interest payments in having the biggest increases in the first 8 months of this year over the first 8 months of last year. Medicaid payments increased 5.4 percent, Medicare payments increased 3.8 percent and Social Security benefits payments increased 3.6 percent.