US federal deficit on track to top $1 billion again - KWWL - Eastern Iowa Breaking News, Weather, Closings

US federal deficit on track to top $1 billion again

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WASHINGTON, D.C. (KWWL) -

The U.S. federal deficit was slightly smaller through the first five months of the budget year than the previous year.  Still, the imbalance is on pace to exceed $1 trillion for the fourth straight year, a troubling sign for President Barack Obama's re-election prospects.

The Treasury Department says last month's budget deficit was $232 billion.  The imbalance for the first five months of the budget year grew to $581 billion, or 9 percent lower than the same period in fiscal 2011.

The Obama administration expects the deficit will reach $1.3 trillion when the budget year ends on Sept. 30.  That would nearly match last year's imbalance.  The government ran a record deficit of $1.41 trillion in 2009 and a $1.29 trillion gap in 2010.

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