Yearly deficit falls below $1 trillion for the first time under Obama

The Treasury Department forecast Monday that the budget deficit for fiscal 2012 will come in at $996 billion, the first time President Obama has presided over an annual deficit of less than $1 trillion.

The budget deficit in fiscal 2011 and 2010 was $1.3 trillion, while the Obama stimulus law pushed the deficit up to $1.4 trillion in fiscal 2009.

{mosads}The Treasury statement is the first since the congressional supercommittee failed to come up with any deficit reduction and disbanded on Nov. 21. Because of that failure, $1.2 trillion in automatic cuts are to take place over the next decade. 

That is not nearly enough to stop the exponential growth of the deficit, which is expected to balloon at a more rapid pace later in the decade due in mainly to the retirement of the baby boomers. The retirements will decrease income tax revenue and increase Medicare costs.

For November, the monthly budget deficit was $137 billion, compared to $150 billion in November of last year. The government took in $152 billion in November and spent $289 billion.

The deficit in October was only $98 billion, but that month benefited from the fact that payments normally made in October were made in September.

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