CBO: Yearly budget deficit reaches $845 billion

Unemployment benefits decreased by $18 billion and defense spending decline by $12 billion.

CBO has predicted that in 2012, the U.S. will have its fourth consecutive year with a budget deficit over $1 trillion.

For May, the monthly deficit is estimated to be $125 billion. The month is much larger than last year, mostly due to a timing shift in certain payments from April to May.

Ignoring that, the May deficit is $41 billion larger than last year.