Country on Track For Fourth Straight Trillion Dollar Plus Deficit
According to the CBO (Congressional Budget Office), the Treasury Department will likely report a deficit of $1.17 trillion through the first 11 months of the current fiscal year.
According to the CBO, revenues for FY2012 are currently tracking approximately 6% higher than FY2011, while outlays are about 2% higher.
The CBO estimates that the final FY2012 deficit number will clock in at $1.13 trillion, which would be roughly $170 billion lower than last year's deficit ($1.30 trillion).
A $1.13 trillion debt in FY 2012 would mark the fourth straight year of trillion dollar plus deficits in the country.
Let's look at the deficit numbers from the past five years:
2008 - $459 billion
2009 - $1.413 trillion
2010 - $1.294 trillion
2011 - $1.299 trillion
2012 - $1.13 trillion (estimate)
As a result of these deficits, the US national debt load has been soaring in recent years - the country just passed the $16 trillion mark for the first time ever.
Moody's warned earlier today that the United States faces a credit downgrade if the Republicans and Democrats can't come together and figure out a budget deal that would "produce a stabilization and then downward trend in the ratio of federal debt to G.D.P. over the medium term".
The country is currently facing a "fiscal cliff" that would see various tax provisions expire and spending cuts kick in at the same time. The CBO has already warned that the "fiscal cliff" could tip the country into another recession.
Source: CBO.gov - Federal Budget Deficit Totaled $1.17 Trillion for the First 11 Months of 2012, CBO Estimates
Filed under: General Knowledge