New U.S. budget deficit figures point to $1 trillion in red ink once again

The U.S. federal government’s budget deficit widened in November compared to October, a sign that the nation is on a path to its fifth straight $1 trillion-plus deficit. The budget gap rose to $172 billion in November, up from $120 billion in October, the Treasury Department announced today. The November deficit was also 25% higher than the same month last year. Last month’s deficit was pushed higher by a calendar quirk that pulled about $33 billion in benefits payments into November from December. The government finished the 2012 budget year with a deficit of $1.1 trillion. President Barack Obama and Congress are under pressure to curb the deficit as part of a budget deal to prevent tax increases and deep spending cuts from kicking in Jan. 1. The deficit, in the simplest terms, is the amount of money the government has to borrow when revenues fall short of expenses. Last year’s deficit was lower than that of the previous year but still extremely high by historical standards. The budget year ends Sept. 30. This year’s deficit is closely tied to what happens with the ongoing “fiscal cliff”: Economists fear that the $671 billion in higher taxes and spending cuts, if left in place all year, would push the economy into a recession. The full story, as well as an interactive feature on the fiscal cliff proposals by Obama and Congress, is available here.