U.S. Budget Deficit Grows by $260 Million in December

U.S. budget deficit grows by $260 million in DecemberBy CHRISTOPHER S. RUGABER

WASHINGTON (AP) - The U.S. annual budget deficit is on track to reach $1 trillion for a fifth straight year, though government revenue jumped last month as people paid some taxes early to avoid higher rates in 2013.

The Treasury Department said Friday that the federal deficit grew just $260 million in December. But for the first three months of the budget year, the deficit widened to $292 billion.

In December, tax revenue rose 12 percent to $270 billion. Spending fell 17 percent to nearly the same amount.

The budget year begins on Oct. 1. The size of the annual deficit will hinge, in part, on how Congress and the White House resolve a debate over raising the nation's borrowing limit. Republicans are demanding deep spending cuts in return for any increase.

The deficit, in simplest terms, is the amount of money the government has to borrow when revenues fall short of expenses. The monthly figures are volatile and can be affected by calendar quirks that shift payments from one month to another.

Much of the December gain in revenue occurred because some companies accelerated bonuses or other payments into 2012 to avoid the possibility of higher taxes in 2013.

And spending fell last month partly because the government provided $14 billion to the mortgage giants Fannie Mae and Freddie Mac in December 2011, after they had lost hundreds of billions from defaulted mortgages in the housing bust. The government didn't make any such payments last month.

The White House and Congress agreed last week to raise taxes on the wealthiest 2 percent of Americans this year as part of a deal to avoid the fiscal cliff. That deal also allowed a Social Security tax cut to expire. But the groups also postponed for two months the implementation of spending cuts that were included in the cliff.

Those cuts are now scheduled to kick in at around the same time the borrowing limit will be reached. And funding authority for most government programs will expire at the end of March.

The government has run annual deficits for more than a decade, although President Barack Obama's presidency has coincided with four straight $1 trillion-plus deficits.

The deficit reached a record $1.41 trillion in budget year 2009, which began four months before Obama was inaugurated. That deficit was largely because of the worst recession since the Great Depression. Tax revenue plummeted, while the government spent more on stimulus programs.

The budget gaps in 2010 and 2011 were slightly lower than the 2009 deficit as a gradually strengthening economy generated more tax revenue.

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.

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democrackso

chris1011
Fearful are you? Loser are you? Gotta blame someone else for your bad decisions, do you? Got bilked by a fast talking salesman did you? There's gotta be a reason for your whining. Yes I know, gullible people are easily bilked - sorry you couldn't make it work for you. Try the lottery.

++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Well well well. What do we have here. More unproductive petty & snide comments from Chrissy, the AOL
poster child.

January 14 2013 at 11:38 PM Report abuse rate up rate down Reply
1 reply to democrackso's comment
chris1011

Yes I know, poor demo. I'm sorry that you're in loserville too. Otherwise you wouldn't be complaining all day every day. Get a grip and do something productive. Before you know it, you might be a winner too instead of a whiner.

January 15 2013 at 11:37 AM Report abuse +1 rate up rate down Reply
marine1942

Who is John Galt ?
Coming very soon.

January 14 2013 at 8:44 AM Report abuse -5 rate up rate down Reply
1 reply to marine1942's comment
chris1011

Fearful are you? Loser are you? Gotta blame someone else for your bad decisions, do you? Got bilked by a fast talking salesman did you? There's gotta be a reason for your whining. Yes I know, gullible people are easily bilked - sorry you couldn't make it work for you. Try the lottery.

January 14 2013 at 9:11 PM Report abuse rate up rate down Reply
2 replies to chris1011's comment
democrackso

There's nothing like Chrissy's unproductive petty & snide comments.

January 14 2013 at 11:40 PM Report abuse rate up rate down
chris1011

Ah, the three stooges. One can always count on you ;>))

January 15 2013 at 11:34 AM Report abuse +1 rate up rate down
mrscaptndavid

This president has added more to our national debt then all the presidents combined throughout our history of our nation up until Pesident Bush!(treasury direct.gov)

January 13 2013 at 6:48 PM Report abuse -3 rate up rate down Reply
1 reply to mrscaptndavid's comment
s.kohanski

What do you expect from an islamic radical ?

January 13 2013 at 7:01 PM Report abuse -3 rate up rate down Reply
democrackso

chris1011
And you think your post is meaningful how?
=====================================

My posts are as meaningful as yours are Chris.

January 13 2013 at 4:41 PM Report abuse -4 rate up rate down Reply
Mike

There's your President and his overspending cronies for you. You're not going to get out of this without cutting spending. Everything should be on the table. Everything.

January 13 2013 at 4:23 PM Report abuse +5 rate up rate down Reply
1 reply to Mike's comment
chris1011

How about our bloated military spending.

January 13 2013 at 4:37 PM Report abuse rate up rate down Reply
1 reply to chris1011's comment
chris1011

Common defense doesn't need to be 10 times larger than all the other large countries combined. 5 times larger is probably enough and still be overkill.

January 13 2013 at 5:40 PM Report abuse +2 rate up rate down
Bill

Illigales, Criminals, and the federal government got us in this mess.

January 13 2013 at 3:27 PM Report abuse +4 rate up rate down Reply
1 reply to Bill's comment
chris1011

Which mess? The one where you lost your shirt on the stock market?? Sorry, but the blame is on your own shoulders. Try to take responsibility for your own miserable condition, won't you.

January 13 2013 at 4:22 PM Report abuse -3 rate up rate down Reply
2 replies to chris1011's comment
democrackso

Ahhh it's Chris the compassionate tolerant liberal who respects the other persons point of view. Posting his usual snide and petty unproductive comments.

January 13 2013 at 4:37 PM Report abuse -1 rate up rate down
chris1011

So if you think spending $292 billion in Q1 is bad, then you are onjecting to the GOP congress, which is the only institution that is in charge of spending.
Why are the GOP congress critters spending like drunken sailors? Why can't they come up with a decent budget and stick to it? Oh I know, they aren't serious, they are still in the mode of making Obama a 1 term president.

January 13 2013 at 5:43 PM Report abuse +2 rate up rate down
Bill

What the hell print enough money to pay off our National debt, then print enough money for all Americans who owe money and pay that debt off. Who cares anymore we are in the toilet. Spread the wealth. I don't think anyone in Washington knows what a budget is haven't had a Budget in how many years???/. Its Just spend, spend, spend.

January 13 2013 at 3:25 PM Report abuse rate up rate down Reply
2 replies to Bill's comment
chris1011

We have a continuing resolution, no budgets are legally needed. In fact, no congress of either party has ever followed their own budgets. They both treat budgets as a suggestion, not as a hard stop.

January 13 2013 at 4:21 PM Report abuse -1 rate up rate down Reply
3 replies to chris1011's comment
lddjkuyk

As long as you understand, currency is commodity like corn or oil. When you overproduce dollar, it becomes worth less. Every dollar coming from debt reduces value. The only way to stabilze dollar is to have money supply grow from economic gorwth. But, Obama takes dollars from economic growth when he increases taxes. During Obama's term, dollar devalued 50%. Oil, in dollars, doubled. If you owned oil in Swiss Franks, it would only be up 10%. In Canadian dollars, it would be even. So, when they say our grandkids will have to pay debt, they forget you pay for Obama's debt through increase in energy, food, clothing, and most everything else. Demand for oil in less now than in 2008, so price increase wasnt from higher demand. Monetatry policy is complicated. But, it is price you pay for Obama every day.

January 13 2013 at 4:46 PM Report abuse +2 rate up rate down Reply
1 reply to lddjkuyk's comment
mrscaptndavid

Don't you love how this administration decided to not count food or fuel when tabulating the yearly rate of inflation? Most people feel the pinch that they can't buy what they used to but do not realize our government is purposely devaluing our money by printing more currency in order to buy our own debt so they can continue to spend. It is the same as having every persons taxes going up throughout the country only it is done in away no one is aware of. Not only are they fiscally irresponsible, but they are devaluing our currency. They are robbing our prosperity on two fronts.

January 13 2013 at 7:09 PM Report abuse -4 rate up rate down
SNOOD LOOOOOSER

Illegals cost us an estimated 300+ billion a year. Why not rid them from our country once and for all and put this savings towards our deficit...

January 13 2013 at 2:40 PM Report abuse +3 rate up rate down Reply
2 replies to SNOOD LOOOOOSER's comment
chris1011

Obama has deported more of them in 4 years than Reagan, Bush Sr. and Bush Jr did in 20 years! And that's a fact.

January 13 2013 at 3:01 PM Report abuse rate up rate down Reply
1 reply to chris1011's comment
vandation

So WHAT ?
Even after that they are still costing us $300 Bil + a year.
Please get a clue.

January 13 2013 at 5:12 PM Report abuse -2 rate up rate down
mfields435

According to the great authority, Fox News, those "illegals" cost us $113 Billion a yr. Yet the buying power of those in SC, alone, (which is hardly an "illegal" hot spot...unlike CA and TX), is $1.8 billion...so let's consider how much demand they bring to our economy...and how many jobs for Americans that demand creates. Hmmm. And then there is the fact that we're all eating lettuce and tomatoes @ prices we'd never see again...and staying in hotels @ rates we'd never see again...and having our lawns mowed,roofs tiled, etc. We love to complain about what those "illegals" cost us...never credit them for what they contribute ( including all those $ they put into SS but never withdrawl). What whiners Americans have become.

January 13 2013 at 3:24 PM Report abuse -3 rate up rate down Reply
2 replies to mfields435's comment
democrackso

Another liberal who thinks Fox News rules the world.

January 13 2013 at 4:39 PM Report abuse -3 rate up rate down
vandation

Many of them CAN and DO get Social Security.
Please get educated. The $1.8 figure you spout ? Less than 2% of SC yearly economy. You can do without it. They may add a LITTLE to the economy ... but they also such MUCH from the Govt teat ... ie .... out of your pocket. As far as lettuce and tomatoes .... big whoop. We should be paying what things cost. There should be NO farm subsidies. When are you D - Baggers going to actually get a clue ?

January 13 2013 at 5:18 PM Report abuse -3 rate up rate down
chris1011

The Debt Ceiling debate is about paying what congress has already spent. It's a non-issue.

If we are serious about debt, we need to improve the employment situation. Invest in jobs!

Why is it so difficult for conservatives to understand. Creating Jobs will generate revenue, which will help to pay down the debt.
JOBS FIRST! All else will follow.

January 13 2013 at 2:38 PM Report abuse +3 rate up rate down Reply
1 reply to chris1011's comment
vandation

How much per job did that job stimulus cost ? FAIL.
What is it with math and D - Baggers ?

January 13 2013 at 5:20 PM Report abuse -3 rate up rate down Reply
fielectric

The Treasury Department said Friday that the federal deficit grew just $260 million in December.

Just 260,000,000

January 13 2013 at 2:32 PM Report abuse rate up rate down Reply