By Vicki Needham - 11/10/10 07:30 PM EST
On the heels of a preliminary report to reduce federal spending and debt, the Treasury Department reported a $140.4 billion budget deficit in October on Wednesday.
The deficit last month was 20 percent lower than the same time a year ago but is the third highest October imbalance on record, down $35.9 billion from that high, Treasury announced Wednesday.
The highest October deficit, the first month of the new fiscal year, was $176.4 billion in October 2009.
Despite the decrease, fiscal 2011 could likely be the third straight year where deficits top $1 trillion.
Today's preliminary report from the fiscal commission would trim $4 trillion between 2012 and 2020 through spending reductions throughout the budget, changes to the tax code and reforms to entitlement spending.