WASHINGTON (AP)--the federal budget deficit is on pace to break the $ 1 trillion Mark for the third straight year, ratcheting up the pressure on the White House and Congress to reach a deal to rein in spending.
The deficit amounted to 971 billion dollars for the first nine months of the year, "said the Finance Ministry Wednesday. Three years ago, who had been a record high for the entire fiscal year.
With three months left, will this year's deficit is likely to top last year's $ 1.29 trillion gap, according to the Congressional Budget Office. But it is expected to come during the record $ 1.49 trillion achieved by 2009. The financial year ending Sept. 30.
For June was deficit of 43 billion dollars, below the 68 billion dollar imbalance in June 2010. Much of the improvement from last year was due to a one-time reduction in the estimated cost of education loans.
But the Government is also opposed to more tax revenues this year, reducing the deficit lite. Revenue rose 9 percent, or 137 billion dollars, by June, the Treasury report said.
It is partly because more Americans have jobs. The economy has added a million jobs over the past nine months, but there are still almost 7 million fewer jobs than before the recession.
Government spending increased this year. Interest on public debt rose 9 percent to 386 billion dollars during the first nine months of this year, compared with the same period last year, one of the biggest increases in spending. Spending on Medicare and Social Security benefits, also increased. (Social Security is the public pension system U.S. and Medicare is the federal insurance program, health care for persons aged 65 and over).
Soaring deficits have kept up a vote to raise the country's $ 14.3 trillion borrowing limit. Republicans and President Barack Obama is to sit out a long-term plan to trim federal spending. Republicans have been demanding steep spending cuts in exchange for voting to increase the limit by borrowing. Obama and Democrats in Congress want tax increases are included in the deal, which the Republicans have to oppose.
The Government reached its limit for borrowing in may Treasury Secretary Timothy Geithner has warned that if the border is not taken up by Aug. 2, is used as the country default on its debt for the first time ever.
But negotiations between the White House and President Obama is still the two sides meet Wednesday for their fourth negotiating session in as many days. Obama has said the daily meetings will continue until an agreement has been reached.
A two-hour session Tuesday produced no progress. Which prompted the top Republican in the Senate proposing gives Obama sweeping new powers to increase the limit to avoid default.
Minority Leader Mitch McConnell offered a plan to allow the President to call for up to $ 2.4 trillion in new borrowing authority until the summer of next year in three separate pleadings. The increases would automatically apply unless both Republican-controlled House and the Democratic-controlled Senate adopted legislation over them.
Obama would veto such legislation gives him power to muscle through debts increased.
Republican plan would require the use of Obama in spending cuts, along with his borrowing requirements. But unlike increased borrowing limit, would not automatically enters into force.
The Government no later than a budget surplus in 2001, when income was 127 billion dollars larger than expenditure. The surpluses were expected to total $ 5.6 trillion over the next decade.
But the country was back in the red by 2002. Deficit deteriorated after President George w. Bush won approval for massive tax cuts and launched the invasion of Iraq and Afghanistan.
In 2008 reached Bush's last full year in office, deficit 454.8 billion dollars, a record at that time. And when the economy plunged into a deep recession, the annual imbalance topped $ 1 trillion.
Higher spending on unemployment insurance and food stamps and a sharp decline in tax revenues, increased the deficit. And it grew even more after Obama administration supported a 787 billion dollar programme to stimulate the economy.
The deficit also deteriorated after Obama and the congressional Republicans have agreed to extend the Bush tax cuts for two years.
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