In May, the Congressional Budget Office (CBO) projected a federal deficit of $642 billion. This projection, among other factors, caused a variety of media sources to stick their collective heads in the sand and declare the deficit no longer a problem for the nation.
Bury your heads no longer, my friends:
The federal government ran a budget deficit of roughly $750 billion for the first 11 months of fiscal year 2013, CBO estimates…
Throughout this fiscal year, the big spenders have declared the tax increases that took place in January made the deficit no longer a problem. One of their big pieces of “evidence” was the $200 billion different between the CBO’s February and May reports, largely because of unexpected revenues from Freddie Mac and Fannie Mae, and the aforementioned tax increases.
Wonder if they’ll note the $100 billion-plus differential between May and August?
CBO notes that it expects a surplus in September, so the total deficit for the fiscal year will be somewhat below $750 billion. It is doubtful the difference will be significant, however – in September 2012, the 11-month deficit was $1.17 trillion, and the final deficit for the entire year was $1.1 trillion.