The U.S. government reported the deficit of 120 billion US dollars in October, that is a striking contrast to +75.2 billion in September 2012 and to 98.5 billion US dollars in the October 2011.
Governmental deficit turned out to be higher than an estimate of 113 billion USD released last week by the Congressional Budget Office. Treasury officials said that technical factors including the number of business days contributed to the difference between this month and October 2011.
WIth all the adjustments, the department sticks to -130 billion in October 2012 compared to -129 billion in October 2011.
This is considered to be the beginning of the 2013 fiscal year. The White House estimated it`s budget deficit at 990.6 billion dollars for the whole 2013 fiscal year. This would be the first annual deficit under 1 trillion US dollars in 5 years, as by now the U.S. deficit stays above 1 trillion for 2012 year.
Moody`s has said that the economy would go into recession next year if Congress fails to avert the fiscal cliff.