Treasury confirms 2013 deficit at $292 billion

The Treasury Department on Wednesday said that the deficit for the first two months of 2013 stands at $292 billion. This number matches an estimate made last Friday by the Congressional Budget Office.

Treasury estimates that the deficit will reach $990 billion this year, nearing the $1 trillion mark the deficit has reached for the last four years.

The federal government spent $638 billion in October and November but only took in $346 billion in revenue.

The latest deficit numbers come as Congress and the White House are locked in tense budget negotiations. Next year's deficit would be reduced by more than $500 billion if automatic cuts and tax increases known as the "fiscal cliff" take effect in January. The sudden, indiscriminate nature of the cuts and increases is likely to cause a new recession, and lawmakers are scrambling for a replacement by Christmas. 

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