The U.S. budget deficit grew by nearly $60 billion in June, remaining
on track to exceed $1 trillion for the fourth straight year.
Through the first nine months of the budget year, the federal deficit totaled $904.2 billion, the Treasury Department reported Thursday.
President Barack Obama is almost certain to face re-election having run trillion-dollar-plus deficits in each of his first four years in office. That would likely benefit his opponent, GOP presumptive nominee Mitt Romney.
Obama and congressional Republicans remain at odds over how to lower the deficit. Unless their disagreement is broken, a series of tax increases and spending cuts could kick in next year. Economists warn that could dramatically slow an already weak U.S. economy and even tip it back into a recession.
The Congressional Budget Office predicts the deficit for the full year, which ends on Sept. 30, will total $1.17 trillion. That would be a slight improvement from the $1.3 trillion deficit recorded in 2011, but still greater than any deficit before Obama took office.
One positive sign this year is the deficit is growing more slowly than last year.
In June it was 6.8 percent behind the pace for the same period in budget year 2011. And a key reason for that is that revenues are up 5.2 percent this year, while spending is down by 0.9 percent.
Through the first nine months of the budget year, the federal deficit totaled $904.2 billion, the Treasury Department reported Thursday.
President Barack Obama is almost certain to face re-election having run trillion-dollar-plus deficits in each of his first four years in office. That would likely benefit his opponent, GOP presumptive nominee Mitt Romney.
Obama and congressional Republicans remain at odds over how to lower the deficit. Unless their disagreement is broken, a series of tax increases and spending cuts could kick in next year. Economists warn that could dramatically slow an already weak U.S. economy and even tip it back into a recession.
The Congressional Budget Office predicts the deficit for the full year, which ends on Sept. 30, will total $1.17 trillion. That would be a slight improvement from the $1.3 trillion deficit recorded in 2011, but still greater than any deficit before Obama took office.
One positive sign this year is the deficit is growing more slowly than last year.
In June it was 6.8 percent behind the pace for the same period in budget year 2011. And a key reason for that is that revenues are up 5.2 percent this year, while spending is down by 0.9 percent.
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