Treasury Department announces $1.3 trillion FY2011 deficit
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This afternoon, the Treasury Department released the September Monthly Treasury Statement, the final monthly deficit report for FY2011. The report showed the government ran a $64.6 billion deficit in September, bringing the total annual deficit to $1.3 trillion. This number matches earlier estimates from the Office of Management and Budget and the Congressional Budget Office. FY2011 marks the third straight year, the government has run a deficit in excess of $1 trillion.
Spending rose 4.2 percent in fiscal 2011 from a year earlier to $3.6 trillion, according to the Treasury. Revenue climbed 6.5 percent to $2.3 trillion.
“There is a lot of red ink on the government’s balance sheet and Congress appears clueless on how to make it disappear,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said before today’s report.
In nominal terms, the deficit inched higher by $4 billion or 0.3% this year. However, the deficit shrank as a proportion of the economy. The deficit narrowed to 8.7% of gross domestic product in 2011 from 9.0% in 2010.
Regardless of how this year’s mark compares to previous years, it is, indisputably, a massive number. We’ve reached the point at which our national debt is negatively impacting economic growth. Each month and year the federal government records these large deficits, they’re compromising the economy’s ability recover and create jobs. Lawmakers must do the millions of jobless Americans a favor and finally begin to budget and spend responsibly.