The U.S. Treasury Department on Friday announced the federal budget deficit will exceeded $1 trillion for the fourth year in a row.
The deficit for the 2012 budget year totaled $1.1 trillion, which is about $207 billion less than it was last year (if it's any consolation).
"The deficit equaled about 7 percent of U.S. economic output, down from 8.7 percent in 2011, 9 percent in 2010 and 10.1 percent in 2009, but it was still greater than in any other year since 1947," Reuters reports, citing the Congressional Budget Office.
(So much for the consolation.)
“The government ran a surplus of $75 billion in September, Treasury said in its monthly budget statement, the second monthly surplus of the fiscal year and the biggest surplus since April 2008,” MarketWatch reports.
Government spending fell two percent to $3.5 trillion. Aided by a 16 percent increase in corporate taxes, tax revenue rose 6.4 percent from last year to more than $2.4 trillion, according to Treasury.
Interestingly enough, the 2012 shortfall is actually lower than the Obama administration had originally anticipated.
Included in the Treasury's announcement was a call from Treasury Secretary Timothy Geithner for Congress to support for the president's plans to reduce the deficit:
The President has put forward a balanced proposal to further strengthen the economy and reduce the country’s future deficits. It is time for Congress to act on these necessary steps that will help create sustainable economic growth for years to come.
And from OMB Deputy Director for Management Zients:
The path forward on deficit reduction is clear. Congress needs to work with the Administration to enact balanced deficit reduction that includes further spending cuts and additional revenue from asking the wealthiest to contribute their fair share. This deficit reduction can and must be achieved without sacrificing investments in education, infrastructure, and research and development that are so critical to creating jobs and securing our Nation’s long-term economic growth and competitiveness.
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The Associated Press contributed to this report.