CBO Reports U.S. 2010 Deficit to Exceed $1.3 Trillion

From C-Span.org:

The Congressional Budget Office (CBO) released a report this morning that estimates that the federal budget deficit for 2010 "will exceed $1.3 trillion—$71 billion below last year’s total and $27 billion lower than the amount that CBO projected in March 2010."

CBO Director Doug Elmendorf updates reporters today on the latest federal budget and economic numbers compiled by his office. In late July, the CBO released a report warning about a looming fiscal crisis if nothing is done about U.S. debt levels.

In June, the CBO indicated that the national debt will reach 62 percent of gross domestic product (GDP) by the end of 2010. The office also reported that the debt could reach its highest percentage since the end of World War II. The causes of the increase is driven by higher federal spending and lower tax revenues in the recent economic downturn.