Deficit for 2010 falls slightly below last year's record level

By Vicki Needham -The Hill

The federal budget deficit for 2010 is estimated at slightly less than $1.3 trillion, lower than last year’s record level, and the second highest since 1945.

The Congressional Budget Office (CBO) pegs the deficit for the fiscal year, which ended Sept. 30, at about $125 billion below the $1.42 trillion record posted for 2009, CBO said in a release on Thursday.

CBO estimates that in 2010 outlays declined by $67 billion, and revenues increased by $57 billion. The estimated deficit is about $51 billion lower than CBO projected in August because outlays were lower and revenues were higher than previously expected, according to the report.

The deficit represented 8.9 percent of gross domestic product, down from 10 percent in 2009, based on the most recent estimate of GDP.

Today’s estimate is expected to be in line with deficit numbers set for release by the Treasury Department later this month.

The deficit in September was $32 billion, the 24th straight month of shortfalls, but was $14 billion less than recorded a year ago.

To read more, visit:  http://thehill.com/blogs/on-the-money/budget/123291-deficit-for-2010-falls-slightly-below-last-years-record-level

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