Nation's November budget deficit down from last year - WREX.com – Rockford’s News Leader

Nation's November budget deficit down from last year

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WASHINGTON DC (WREX) -

The United States government recorded a $135.2 billion deficit in November, down 21.4 percent compared to the same month last year.

Overall, the country has run a decreased deficit through the first two months of this budget year compared to 2012, a sign of improvement for its finances. The deficit measures the gap between revenue and spending.

The total deficit for first two months of the budget year, beginning October 1, is $226.8 billion, down 22.7 percent over the same period last year.

Revenue was boosted from higher taxes and a better economy, but spending has slowed. Thanks to those trends, the 2012 budget year saw an annual deficit of $680 billion, the lowest in five years.

Private economists predict this year's deficit will be even lower, at around $600 billion.

However, Congress' budget office predicts the recently announced budget deal would increase the deficit by $41.4 billion over the next two years. The report also states taxpayers would save around $23 billion under the deal, when calculated over the next decade.

The office claims the deal would bring the deficit up $23.2 billion next year and $18.2 billion the following year. The agreement allows $53 billion in relief from automatic cuts to spending over the next two years, substituting $85 billion in longer-term savings and fee proposals over the next 10 years.

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