Numbers don't lie: 2011 deficit on track to eclipse $1.3 trillion

Here's a little item tucked away on The Hill newsite that won't help the president's re-election bid. Less revenue in September will push the federal budget deficit above $1.3 trillion: The Congressional Budget Office on Friday said that the federal budget deficit is on track to be $1.3 trillion this year, $14 billion more than the deficit CBO predicted in August. Despite all the wrangling in the spring between Republicans and Democrats about budget cuts, 2011 saw spending outlays increase by 4.2 percent compared to 2010. This included a 1 percent increase in defense spending and 1 percent increase in Medicaid spending. Medicare and Social Security spending rose by 4 percent, a foretaste of the ballooning in entitlement expenses expected to occur as baby boomers retire. CBO said the change from the August estimate was due in part to certain payments being made in September rather than October and because revenue was $11 billion less than expected. The decline in revenue occurred in...(Read Full Post)