CBO: FY 2011 Deficit Hit $1.298T, Up From FY 2010 Deficit of $1.294T

By | October 7, 2011 | 5:55 PM EDT

President Barack Obama at a press conference in the East Room of the White House, Sept. 6, 2011. (AP Photo/Susan Walsh)

(CNSNews.com) - The Congressional Budget Office reported on Friday that it now estimates that the federal budget deficit for fiscal 2011, which ended on Sept. 30, was $1.298 trillion. In nominal terms, that was up slightly from the $1.294 trillion deficit the federal government recorded in fiscal 2010.

As a percentage of GDP, according to CBO, the fiscal 2009 and 2010 deficits were bigger than the fiscal 2011 deficit.

However, according to CBO, the last three fiscal years--2009, 2010 and 2011--now boast the three largest deficits (measured as a share of GDP) since World War II. That means that each of the three largest federal deficits since World War II have come during President Barack Obama’s term in office.

Obama was inaugurated on Jan. 20, 2009, in the midst of fiscal 2009, but a month later signed an economic stimulus law that the CBO has estimated cost $825 billion.

The fiscal 2011 deficit of $1.298 trillion will be 8.6 percent of GDP, the CBO estimates.The fiscal 2010 deficit of $1.294 trillion was 8.9 percent of GDP, and the fiscal 2009 deficit was 10.0 percent of GDP.

Even though the deficit was going up in fiscal 2011, federal tax revenues were also increasing. In fiscal 2010, the government took in $2.162 trillion in tax revenue, according to CBO. In fiscal 2011, it took in $2.303 trillion, an increase of 6.5 percent.

The biggest increase in tax revenues came from individual income taxes, whose receipts climbed from $899 billion in fiscal 2010 to $1.093 trillion in fiscal 2011, a jump of 21.6 percent.

On the spending side, the biggest increase was in government interest payments to finance the debt. Those climbed from $228 billion in fiscal 2010 to $266 billion in fiscal 2011, a jump of 16.7 percent.

By comparison, defense spending went from $667 billion in fiscal 2010 to $679 billion in fiscal 2011, an increase of 1.8 percent.