U.S. recorded $1.3 trillion deficit in 2011
The federal government recorded a $1.3-trillion budget deficit in the 2011 fiscal year, roughly even with the previous year’s shortfall.
An analysis from the nonpartisan Congressional Budget Office released Monday showed that federal government took in $2.3 trillion while spending $3.6 trillion. Receipts increased at a faster rate than the growth in spending -- 6.5% versus 4.2%, respectively.
The deficit as a share of the national economy actually decreased slightly from 9% to 8.7%, though that figure was still the third-highest since World War II.
The analysis comes as congressional negotiators are working to meet a Thanksgiving deadline to put forward a plan to slash long-term deficits by $1.5 trillion.
An initial round of budget-cutting tied to the debt ceiling deal and earlier budget accord is already showing results. For October, the first month of the 2012 fiscal year, the government ran a $95 billion deficit, down from $140 billion a year ago.
The cost of interest on the national debt grew 17% in 2011, and is now equal to 1.8% of the entire GDP.
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