Economy

U.S. Budget Deficit Hit $1.1 Trillion In July

The U.S. budget deficit stood at $1.1 trillion through July, the Treasury Department says, making 2011 the third consecutive year that the deficit has hit at least $1 trillion. The federal government's budget year begins in October, leaving two more months in which the deficit might rise.

Looking at the numbers for July alone, the U.S. budget shortfall was $129 billion — a drop in spending from July 2010, according to Bloomberg.

As the AP reports:

This year's deficit is on pace to exceed last year's imbalance of $1.29 trillion but fall short of the record $1.41 trillion set in 2009.

For the first 10 months of the budget year, spending has risen 2.4 percent while revenue has climbed 8 percent. That's a sign that more people are working and paying taxes, although unemployment remains high at 9.1 percent.

The new deficit numbers emerged as Democrats and Republicans name members of Congress to a bipartisan "Super Committee" on debt. The panel will be expected to find ways to cut $1.2 trillion from the overall deficit over the next 10 years.

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