According to the Congressional Budget Office, this year’s deficit will be $1.1 Trillion – which is slightly less than the predictions made by the CBO in March of this year. The cause for the decrease in projection is that tax revenue has increased by nearly 6%, and spending narrowed by 1%.
This marks the fourth consecutive year that the annual deficit will exceed the $1 Trillion mark.
The CBO also projects that, “under current law, a sharp reduction in the federal budget deficit between 2012 and 2013 will cause the economy to contract, but will also put federal debt on a path more likely to be sustainable over time.”
Click The CBO Infographic For Large Image