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Federal deficit tops $1T for third straight year

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Posted: Aug 10, 2011 1:16 PM
Source: Associated Press

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Topics: Federal deficit, budget deficit, Congress, White House, Treasury Department, President Barack Obama, spending cuts, WBRZ

WASHINGTON - The nation's budget deficit has topped $1 trillion for a third straight year, adding pressure on Congress and the White House to make more progress on a long-term plan to shrink
the growing imbalance.

The Treasury Department says the deficit through July totals $1.1 trillion.

Three years ago, that would have been a record high for the full year.

This year's deficit is on pace to exceed last year's imbalance of $1.29 trillion but fall short of the record $1.41 trillion set in 2009.

Record deficits have prompted President Barack Obama and Congress to create a 12-member committee of lawmakers tasked with reducing the imbalance over the next decade by $1.2 trillion.

If the panel splits and cannot agree on a plan, severe across-the-board spending cuts would go into effect automatically.

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