The federal budget deficit reached $1.23 trillion in August. The third straight $1 trillion-plus deficit adds pressure on Congress and the White House to reach agreement on a long-term plan to trim government spending. Hit the jump to read the rest of the story.
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The Treasury Department says the deficit grew by $134.2 billion last month. At that rate, the nonpartisan Congressional Budget Office projects the deficit will total $1.28 trillion when the budget year ends in September. That would nearly match last year’s $1.29 trillion imbalance and come in below the record $1.41 trillion hit in fiscal 2009.
A congressional panel is seeking $1.2 trillion in savings later this year.
The CBO director warned that spiraling interest payments could swamp the government’s ability to pay for its operations and could spark a financial crisis if nothing is done.