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U.S. Gov’t Kicks off 2013 Budget Year With $120B Deficit

Nov. 13, 2012 9:22pm Becket Adams

The 2013 Budget Year Begins With $100B+ Budget Deficit

President Barack Obama speaks during a campaign event at the New Amsterdam Theatre on June 4, 2012, in New York. We’re pretty sure he’s asking the crowd to let him be clear (AP)

The federal government kicked off the 2013 budget year with a $120 billion deficit in October, a $22 billion increase from this time last year.

You know what this means, right? It means that we’re well on our way to our fifth straight $1 trillion-plus annual deficit.

Hooray for us.

The deficit, as many Blaze readers know, is the amount of money the government decides to borrow when revenues fall short of expenses. Over the past three years, revenue has fallen below 16 percent of the total economy, as measured by the gross domestic product (GDP), while spending has exceeded 22 percent of GDP. In an attempt to fill this gap, the U.S. government has borrowed, borrowed, and borrowed some more, pushing the federal debt to $16.2 trillion.

The government is expected to hit its borrowing limit of $16.39 trillion by the end of December, by which time Congress will probably just raise the debt-ceiling — again.

Tax revenue increased 13 percent from the same month last year to $184.3 billion. But spending rose 16.4 percent to $304.3 billion. Spending was held down last October by a quirk in the calendar: the first day of the month fell on a Saturday, so some benefits were paid in September 2011.

The government ran a $1.1 trillion annual budget deficit in the fiscal year that ended in September. That was lower than the previous year but, you know, it’s still over $1 trillion dollars!

Obama’s presidency has coincided with four straight $1 trillion-plus deficits — the first in history and a record he distracted from during his re-election campaign with things like Big Bird, binders, and the supposed “war on women.”

And he won.

The size and scope of this year’s deficit will largely depend on what happens with a package of tax increases and spending cuts set to take effect in January unless the White House and Congress reach a budget deal to avoid the so-called “fiscal cliff.”

If the economy goes over the cliff, this year’s deficit would shrink to $641 billion, according to the Congressional Budget Office. But the CBO also warns that the economy would sink into recession in the first half of 2013.

If the White House and Congress can reach a budget deal that extends the tax cuts and avoids the spending cuts, the deficit will end up roughly $1 trillion for the budget year, the CBO says.

But even if lawmakers agree to a deal that extends most of the tax cuts and spending provisions, the deficit for this year will still be about $1 trillion.

The government has run annual deficits for more than a decade and hit a record $1.41 trillion in 2009, Obama’s first year in office. Tax revenue plummeted during the recession downturn, while the government spent at a breakneck pace on its stimulus programs.

President George W. Bush also ran annual deficits through most of his two terms in office after he won approval for broad tax cuts and launched wars in Afghanistan and Iraq.

The last time the government ran an annual surplus was in 2001.

Follow Becket Adams (@BecketAdams) on Twitter

The Associated Press contributed to this story. All photos courtesy the AP.

(H/T: The Hill)

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Comments (56)

elvisroy0000
Posted on November 15, 2012 at 11:14am
well i have been Busy lately spamming Ed Schultz samuel L Jackson BoB Scheiffer, Diane Sawyer Martin Bashiir and any Other Libs facebook Page i can Find i want these asses to Realize how wrong They were https://www.facebook.com/elvisroy0000fanpage?ref=hl please comment and like

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Constantine Ivanov
Posted on November 14, 2012 at 11:22pm
About the Adam’s phrase “President George W. Bush also ran annual deficits through most of his two terms in office after he won approval for broad tax cuts and launched wars in Afghanistan and Iraq” and all those who hysterically shriek something like “want a balanced budget? Stop the wars in Iraq and Afghanistan…”

As of 11-14-2012,
the Current Outstanding Public Debt of the United States National Debt is $16,244,708,707,467.
Growth of US Debt Over Past 50 Years
Current: $16,244,708,707,467.25
2010: $13,178,317,356,215.73
2004: $7,379,052,696,330.32

Cost of War to the United States:

Total Cost of Wars Since 2001: $1,393,120,152,648
Cost of War in Iraq
$808,626,545,136

Cost of War in Afghanistan
$584,493,607,512

So, if those war-caused-budget-deficit alarmists are able to calculate 2+2 without a calculator, try to do an elementary schoolwork task:
$16,244,708,707,467.25 – $1,393,120,152,648 = (you may neglect $0.25)

If you succeed, stop shrieking and start thinking: what REALLY, what ACTUALLY causes our almost unpayable National Debt.

I beg you, I beseech on my knees: please shut your chewing device up, because your shrieks caused bullous myringitis in my ears.

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boats48
Posted on November 14, 2012 at 11:02am
Budget? Budget? What budget? You need to pass one before you can know what’s in it! We don’t need no stinking budget!!! We haven’t had one in four years, why start now? So, you see, we can’t be over budget because there isn’t a budget in the first place.

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BookMDanno
Posted on November 14, 2012 at 10:32am
Wish the GOP would cave in. Yes, cave in. Vote for his stupid tax increases… to expire before midterm elections so the issue HAS to be revisited and the Dems held accountable by voters. GOP voters sign a statement that their vote is being made in protest not in endorsement, to prove it will fail on its own merits. In 2 yrs, pick up the pieces, probably with a stronger mandate, without charges of obstructionism or racism to cloud the issues.

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- TheBurningTruth
  Posted on November 17, 2012 at 12:17am
  I’ll raise you: I hope that the Republicans don’t even run a candidate in 2016. I believe that the conditions in the country will be so bad by then that the Demoncrats will be happy to “lose” a term to get someone to blame. Whoever gets elected in 2016 will have 8 years of the Progressive Liberal agenda (buying votes with free stuff, huge deficits and anti-business regulations) that they won’t be able to roll back. The winner of 2016 is already the loser. Let the Demoncrats have it again.
  
  Report this comment
Warthog Fixer
Posted on November 14, 2012 at 8:46am
Budget? WHAT Budget???!!! We haven’t had a budget in 4 years now! We’ve had nothing but “Continuing Resolutions”. Maybe that’s HOW Big Brother keeps spending TRILLIONS more than he takes in!

In solidarity please forgive me for my rant. The frustration our Government is presenting makes a migraine look appealing right now!

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jessieH
Posted on November 14, 2012 at 8:39am
What a way to start the day. How about we just push Congress of the damn cliff.

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- Warthog Fixer
  Posted on November 14, 2012 at 8:47am
  I”ll second that! Mr. Speaker can we get a vote?
  
  Report this comment
- BookMDanno
  Posted on November 14, 2012 at 10:27am
  Only downside to that is that it leaves BO untethered.
  
  Report this comment
- Warthog Fixer
  Posted on November 14, 2012 at 11:44am
  I’ll take that as a, “No”…
  
  Report this comment
demsrtraitors
Posted on November 14, 2012 at 8:31am
want to save Billions? first. stop the wars. secondly stop all foreign welfare( aid) . I think borrowing from China and then giving away 60 BILLION a year to over 160 countries is just insane. The next step would be to deport ALL ILLEGALS. no hearings, you get rid of them as soon as you catch them. I know that makes cowardly and traitorous Whites uncomfortable but those illegals will get rid of you and your family in a heartbeat. lastly execute those on death row and make ALL prisoners grown their own food and produce their own energy.

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PlanetReality
Posted on November 14, 2012 at 8:14am
YEA!!!! off to a great start much like the last four yrs!!!
Where r all of our obama phones?????

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SamIamTwo
Posted on November 14, 2012 at 8:07am
It began in Oct of this year. Anyone with half a mind could have come up with the number before election day as the 1st qtr began in Oct. Before 1 oct there had to be a continuing resolution as there is no budget. And after it was appropriated it had to be committed on 1 Oct 12 or there would have been massive stop work orders issued for all contracts and only essential federal employees would be able to come to work. The bloody number was out there well before 1 Oct…

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Detroit paperboy
Posted on November 14, 2012 at 4:52am
They are pushing us to the brink…………………it will soon be time to push back…

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SituationalGravity
Posted on November 14, 2012 at 2:35am
These numbers are easy to predict. In fact through 2015 the numbers are supposed to be similar.

But everyone likes their debt; left & right. The American Ideal was built upon balancing budgets; thus requiring a Private Sector. America is now turning into Rome. Rome died of debt.

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- fastfacts
  Posted on November 14, 2012 at 4:37am
  So also is the results of Obama raising taxes. The left can do study after study on how raising taxes won’t hurt the economy, but everyone knows logically that it is another nail in the coffin. Just today CA Gov Jerry Brown was trying to convince CA that the rich will stick around if he raises taxes, that they are fine with raising taxes. Do you think he is convincing: http://www.thedailycandidate.com/video/2012/nov/brown_touts_rich.html
  
  Report this comment
- NeilChapin
  Posted on November 14, 2012 at 5:44am
  It’s only going to get worse, the President is not going to reduce the deficeit or the debt now that he is re-elected. Read fresh political commentary at: http://smallcraftadvisorychronicles.blogspot.com/
  
  Report this comment
Cosmos102
Posted on November 13, 2012 at 11:51pm
It’s going to be an interesting 4 years. What will the moochers do when they see Obamacare tax taken out of their monthly welfare provision? Will well dressed Liberals revolt when they have to wait in DMV like lines to request a medical procedure from Govt officials…standing next to the poor and unclean, as equals. What will this do to their Liberal sensibilities? Just how long can Obama keep up his charade? When we’re all poor, who will pay the bills? The country is on a fast track to hell. Perhaps hell makes a good starting point from which to take this country back from the selfish, the spoiled and the ignorant. Perhaps that is what it will take.

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sbenard
Posted on November 13, 2012 at 11:47pm
That’s a 25% increase — in one year!

Last week, I had the opportunity to meet with one of the conservatives in the US Senate. One of our group asked about the debt.
The good Senator reviewed the various options:
1) The Dems want to raise taxes, but the Senator tells them there is NO tax that can cover the deficit without destroying the economy. Obama owns it now!
2) We can print money and monetize the debt. This has disastrous consequences throughout history, and is a non-starter. A hyperinflationary depression would be the result!
3) The Senator recommends a Balanced Budget Amendment to the Constitution. He said this is the best solution, but is not likely to pass.
4) We can slash the budget. Based upon the figures I’ve seen earlier today, our deficit is now 40% of the budget. This isn’t going to happen, especially with the Dictator of Debt in office for four more years.
5) The Senator told us that the most LIKELY outcome is that we hit a debt brick wall in the next couple of years. It will cause a collapse in the financial markets and a catastrophic depression. But he said that is the most probable outcome. When this happens, unemployment will go through the roof, all entitlements will come to a sudden end, and people will be starving in the streets. But the Senator stunned me by also predicting that when this occurs, it will spell the demise of the Democrat Party because they will no longer be able to blame anyone else. It will destroy them!

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- DadRocked
  Posted on November 13, 2012 at 11:59pm
  Concur
  
  Report this comment
- SituationalGravity
  Posted on November 14, 2012 at 2:39am
  We gave you a Republic if you can keep it. Yo, Ben; then why didn’t you place a balance budget regulation in the Constitution (at least a reasonable budget plan)?
  
  Report this comment
- Warthog Fixer
  Posted on November 14, 2012 at 8:51am
  @ Situational
  
  Because our founding fathers based our constituion on a governement with proper morals and decency. When was the last time you saw and morals or decency in the majority vote?
  
  Report this comment
Ragnars Repos
Posted on November 13, 2012 at 11:31pm
Look, at this point there is no solution to this that doesn’t involve a lot of pain for Americans.

A good economy will not bring us out of this. It’s too late.

The optimists seem to ignore what the pols are doing and what they plan to do.

Those at the helm have something in mind for us, but it certainly doesn’t involve prosperity/abundance.

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- DadRocked
  Posted on November 13, 2012 at 11:41pm
  Oh yes it does REPOS…
  
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- DadRocked
  Posted on November 13, 2012 at 11:43pm
  Their own… Just like you said earlier, Please prepare your families… We have to watch out for out own kind.
  
  Report this comment
Metallicat
Posted on November 13, 2012 at 11:21pm
I cant wait to see what the Obamas spend on their celebration vacation. You know they wont spare any expense this Christmas.Another four years of watching the Obamas play celebrity,while our government does nothing,and America diminishes in the world. At least we get to watch them enjoy our tax dollars. Joy to the world!

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Ragnars Repos
Posted on November 13, 2012 at 11:08pm
In 2008, Americans lost their minds. In 2012, they lost their country.

Please prepare your families.

We need good people to survive what is just around the corner.

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- DadRocked
  Posted on November 13, 2012 at 11:19pm
  There will be those that come for help, there will be those giving help, there will be those protecting the before mentioned from the dark sides/bad guys. Your short comments tell me that you’ll be invited to sit at our fire anytime.
  
  Report this comment
Chrono_Sleuth
Posted on November 13, 2012 at 9:59pm
Why do we always talk about the budget? It’s not remotely important or relevant until we know the financial reports, something virtually no reporter ever likes to cover, be it state or federal.

http://www.gao.gov/financial/fy2011/11frusg.pdf

Here’s the 2011 annual financial report, the state reports are all called Comprehensive Annual Financial Reports (CAFR). I would pay special attention to government investment in the actual market…then wonder who really controls Wallstreet and the largest multinational US corporations.

That said…great, more debt =P.

Oh, and Anonymous T. Irrelevant, they haven’t passed a NEW budget. As it is, we’re running on a 5 year old budget from the time of Pelosi, when Bush era deficits nearly tripled, and we’ve seen numerous bills making small changes here and there to the budget. Also…budgets don’t tell you how much you have and do not have. It’s your financial statements and reports that tell you that. Budgets determine the use of said money and whether you borrow and how much, however that’s only if you disclose the full amount of money you actually have in all assets in your budget. Many people don’t because some money isn’t going to be allocated, it will just sit and collect interest, or the value of something will simply retain itself overtime, unsold/used/etc.

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- DadRocked
  Posted on November 13, 2012 at 10:06pm
  OK… Fellow numbers guy?
  If so you threw out a number of issues/scenarios here.
  If you are a paid numbers guy, I’ll bite… If not, I won’t waste my time…
  Let me know…
  
  Report this comment
- Chrono_Sleuth
  Posted on November 13, 2012 at 10:17pm
  No, just a guy following what tracks he can. If I were to classify my job it’s a freelance networker and aspiring novelist. So I suppose we shouldn’t waste time, though I am curious what your angle would be.
  
  Report this comment
- rawmilker
  Posted on November 13, 2012 at 10:23pm
  Guess they’re going to continue to create $$ out of thin air. Thats great, just great….
  
  http://truedemocracyparty.net/2011/09/rothschilds-exposed-500-tril/
  
  Report this comment
- AbrahamsSheepdog
  Posted on November 13, 2012 at 10:25pm
  @Dad. We are stupid. We flush $ down the toilet. Now just shovel it into the sewer. That’s what shovel ready ment. It was telling kids how we will dug a hole in their America in slave mines if we don’t pray. They are laughing at us. You got tricked. Adam felt the same way.
  
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- DadRocked
  Posted on November 13, 2012 at 10:27pm
  Let me refer you to my previous posts below… While your doing that, I’ll reread you post and put it into, as my boss says, a Readers Digest version. Cool?
  
  Report this comment
- DadRocked
  Posted on November 13, 2012 at 10:32pm
  @AbrahamsSheepdog – I’ve just perused your last ten postings and I don’t see any substance so I’ll just let you be…
  
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- DadRocked
  Posted on November 13, 2012 at 10:45pm
  Chrono_Sleuth – are you there?
  
  Report this comment
- AbrahamsSheepdog
  Posted on November 13, 2012 at 10:47pm
  K money man. I could talk over you all day sir. You ask a dumb question. I gave you a dumb answer. You go on, I have all day. Your presence noted.
  
  Report this comment
- DadRocked
  Posted on November 13, 2012 at 10:58pm
  @RAWMILKER – You’re right – They are gambling with printing then buying their old debt in hopes that times will get better. How does that pan out? Firstly, there are the “what ifs?”
  
  Let’s imagine there is good news. The economy recovers, things start to go well–time to put the brakes on. The Fed sells the securities it bought for cash, draining paper money out of the system.
  This could mean that interest rates rise, the dollar strengthens and inflation falls. The heat then comes out of the recovery with government tax increasing and deficit falling to normality. Everyone sings halleluiah! It could well happen.
  
  Now let’s imagine bad news. The economy dead in the water and the U.S. is over; with it simply unable to compete any longer.
  
  Report this comment
- DadRocked
  Posted on November 13, 2012 at 11:11pm
  SheepDAWG: I’m not knockin’ you… I come here to chill from this CRAP of life and don’t get into these things to deeply. I go into companies and get them out of debt and rolling again. They’re in the black then go back to their old habits. It’s only human nature. When it comes to money for individuals and companies, well lives are at stake… A lot of companies take me on a contractual basis, others just can’t take my ‘blue collar stuck in the white collar’ mindset. That’s all it’s about with me. Again no offense.
  This is why I was very general in my comments with Chrono_Smith. No need to get into the ‘Readers Digest’ version if he was just spewing… He was cool enough to be straight up with his response.
  
  Report this comment
- DadRocked
  Posted on November 13, 2012 at 11:13pm
  Chrono_Sleuth – are you back?
  
  Report this comment
mgh999
Posted on November 13, 2012 at 9:54pm
They bought their tickets, I say let em crash.

Eventually you have to balance the books. Why not now? If not now, when?

It’s not like $1.4 T deficits are helping, with unemployment stagnant at around 8%.

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- DadRocked
  Posted on November 13, 2012 at 10:16pm
  And that 8% is just a tip of the iceberg.
  The broadest measure of labor underutilization — which includes people employed part-time for economic reasons and people marginally attached to the labor force — is basically the same as in the previous month, dropping just a bit from 14.7% in SEP to 14.6% in OCT. and that’s the national avg.
  
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Chromo200
Posted on November 13, 2012 at 9:46pm
Let us see the deal will be:
. Tax the Rich that has already sheltered it’s money so the people that make betwen $250,000 to $500,000 pay more.
. Increase in Gas tax
. Increase Heating fuel Tax
. Free College tuition if your folks live in a disadvantaged area (inner city)
. Forgiveness of your student loan if you live in a disadvantaged area
. Grants if you open a factory .. Green Energy related, if you place the factory in a disadvantaged area.

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Ghostrhymer6
Posted on November 13, 2012 at 9:45pm
our goverment will control us totaly before 2016 ends pray to GOD to save our liberty

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- DadRocked
  Posted on November 13, 2012 at 10:00pm
  Welcome back newcomer Ghostrhymer6 – Optimism and being well informed not naivity will get you through this. They can not own or control us, but the can tighten the thumbscrews reallllly tight. The main thing is be informed, Trust In God, don’t give up or in and keep your powder dry.
  
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countryfirst
Posted on November 13, 2012 at 9:43pm
I still cannot and may never be able to talk to friends & family that voted for the destruction of our country. They never wanted to listen to the truth regarding Obama

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- rickc34
  Posted on November 13, 2012 at 9:48pm
  At least Obama is consistent with his over spending …let it go over the cliff.
  
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DadRocked
Posted on November 13, 2012 at 9:42pm
According to this from Reuter last FEB2012 – It was $27B Now $120B budget?

January deficit fell sharply to $27 billion: CBO
Tue Feb 7, 2012
http://www.reuters.com/article/2012/02/07/us-usa-deficit-idUSTRE8161WV20120207
(Reuters) – The budget deficit shrank by nearly half in January compared to a year earlier as tax collections from individuals rose and outlays fell, the Congressional Budget Office said on Tuesday.
The CBO said it expects the Treasury Department to report a $27 billion deficit for January, versus a $50 billion deficit in January 2011.
The January budget gap will bring the total deficit for the first four months of fiscal 2012 to $349 billion, a decrease of about $70 billion from the same period of fiscal 2011.

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Netsurfer2
Posted on November 13, 2012 at 9:41pm
I believe Obama’s intent is only to drive our country into the worst deficit ever beyond getting out! You heard him say that “voting is the best revenge”! My prediction is that in 2016 the deficit will be over 20 trillion and climbing like no tomorrow! By then there will be no way out and poverty will be the only choice! Education will continue to lose ground and people around the world will continue to look down on us! Khrushchev was right! Our young will be influenced with downgrades of society from within our own society! Drugs will rampantly take over, poverty will be second to none and it will ruin our country completely! I’m so sick of the liberal agenda! I don’t believe in food stamps, welfare and the government calling the shots!

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- DadRocked
  Posted on November 13, 2012 at 9:52pm
  $20T is a very conservative amount in four years considering it is, as I write, $16.3T and had risen by over $10T in the past four years. QE is now open ended so they can keep adding without anybody’s approval. Either you’re very hopeful or… well you may be off by $5-$6T
  
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- thebigred_dog
  Posted on November 13, 2012 at 10:45pm
  Genius, Just spend America into a third world status, no need to take rights away, Just make the US a financial toilet and no one will get within a hundred miles of the stench, Obama loves America so much that he spent all its money till there is nothing left.
  
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Ghostrhymer6
Posted on November 13, 2012 at 9:41pm
Obama spends spends and spends untill we will all be dead

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- DadRocked
  Posted on November 13, 2012 at 9:55pm
  Welcome newcomer Ghostrhymer6 – Not dead but not wealthy
  
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Anonymous T. Irrelevant
Posted on November 13, 2012 at 9:36pm
How do they know how much money we DON’T have? They haven’t passed a budget in 5 years?

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- DadRocked
  Posted on November 13, 2012 at 9:46pm
  Exactically (Tigger Catchphrase)
  
  Report this comment
- Dde13
  Posted on November 13, 2012 at 9:49pm
  Odds are its worse…
  
  Report this comment

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