Although the fiscal cliff was recently avoided the United States is far from out of an economic mess with a budget deficit of $1 trillion looking likely. Money News has reported on an Associated Press story on Jan. 11, 2013, Budget Deficit Likely to Hit $1 Trillion Even as Tax Payments Rise. Even though government revenue jumped last month as many people paid some taxes early to avoid higher rates in 2013, the U.S. annual budget deficit is on track to reach $1 trillion for a fifth straight year.
The Treasury Department announced on Friday that the federal deficit grew just $260 million in December. However, for the first three months of the budget year, the deficit increased to $292 billion. In December, tax revenue rose 12 percent to $270 billion. Spending fell 17 percent to nearly the same amount. The actual size of the annual deficit will depend, in part, on how Congress and the White House resolve a debate over raising the nation's borrowing limit.
Fox Business Network has also covered this Associated Press story on the U.S. budget deficit, US budget deficit grows by $260M in December. Although the government has run annual deficits for greater than a decade, President Obama's presidency has coincided with four straight $1 trillion-plus deficits. The Republicans are now demanding deep spending cuts in return for a consideration of any increase in the nation's borrowing limit.