Budget Office: Deficit to Hit $1.28 Trillion, Slight Reduction From Record Years

WASHINGTON (FoxNews.com) - The federal budget deficit will hit $1.28 trillion this year, congressional budgeters reported Wednesday, down slightly from the previous two years but enough to set off new warnings about a sluggish economy and major long-term debt.

The Congressional Budget Office predicts budget deficits will be around $3.5 trillion over the next decade, a reduction of $3.3 trillion that was in an earlier estimate attributable to the deficit reduction package passed by Congress earlier this month. But in its 10-year plan, never do deficits drop below $205 billion in a fiscal year.

By the end of 2021, debt held by the public will equal 61 percent of GDP, it added.

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