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Federal Deficit Totals Nearly $845 Billion After 8 Months

Last updated on Wednesday, June 13, 2012

(WASHINGTON, DC) - The government reports that the federal budget deficit is approaching $1 trillion for a fourth straight year.

That's despite the fact the government is collecting more tax revenue than last year.

The Treasury Department says the deficit grew by $124.6 billion in May. That put the deficit through the first eight months of the budget year at nearly $845 billion, or nearly 9 percent below last year's imbalance for the same period.

The Congressional Budget Office forecasts that the deficit for the entire 2012 budget year, which ends Sept. 30, will total $1.17 trillion. That's only a slight improvement from the $1.3 trillion deficit recorded in fiscal 2011. And it is certain to keep the federal budget near the center of the presidential campaign.

So far this year, government receipts are running 5.3 percent higher than a year ago. A better job market and modest economic growth have led to higher tax revenue.

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