Federal Budget Deficit Nears $1 Trillion Mark
The federal budget deficit is about to break the $1 trillion mark for the third straight year. This has placed added pressure on the Obama administration and Congress to formulate a plan to curb government spending.
According to the latest report from the Treasury Department, the deficit is already at $927.4 billion during the first eight months of the current fiscal year. The deficit is likely to exceed last year’s $1.29 trillion deficit and could come close to the $1.41 trillion recorded in 2009. The fiscal year ends on September 30.
Last May the monthly deficit was $57.6 billion. That is lower than the $135.9 billion deficit for the same period last year. The latest Treasury report shows that more people are working and paying taxes, which is a positive sign for the federal government. The government earned a total of $1.48 trillion for the eight months that ended in May. It is a 10.3 percent increase compared to the same stretch in the previous fiscal year.
But the bad news is that the federal government spent 2.41 trillion through May. The fastest growing factor of the budget is attributed to the interest on the national debt, which rose 13.6 percent for a total of $165.3 billion.