U.S. federal government deficit is estimated to reach 1.3 trillion dollars in 2011 fiscal year ending September, the Congressional Budget Office (CBO) reported Friday.
The CBO estimate is approximately the same amount as the shortfall recorded in 2010. It will be the third consecutive year that the federal fiscal red ink of the world's largest economy surpassed the one-trillion-dollar mark.
The 2011 deficit equals to 8.6 percent of the U.S. gross domestic product, down from 8.9 percent in 2010 and 10 percent in 2009, but higher than in any other year since 1945.
The 2009 record deficit of 1.41 trillion dollars was registered as the country struggled through a recession and was in the midst of the Wall Street bailout. Continuing weakness in the economy has kept tax revenues low. The revenue picture did improve in 2011 as individual income tax receipts rose 22 percent to 1.1 trillion dollars, CBO estimated.
U.S. overall federal fiscal imbalance is about 14.9 trillion dollars. Interest payment on the national debt increased 17 percent to 266 billion dollars.
Due to sluggish growth and high unemployment, the U.S. debt to GDP ratio is not expected to fall significantly in the near term. Policy makers are planning to seriously trim the country's mounting debt in the medium term future.