CBO Report: Last Year's Deficit Hit $1.087 Trillion; Obama's First-Term Saw Annual Deficits Over $1 Trillion

The Congressional Budget Office last week released updated historical budget data for the federal government, reporting a deficit of $1.087 trillion in fiscal 2012.

Last year marked the fourth straight year—and the only four years in the history of the nation--when the federal government’s deficit topped $1 trillion.

Last year’s $1.087 trillion deficit was even greater in inflation-adjusted dollars than the peak World War II deficit of fiscal 1943—which was $54.554 billion in 1943 dollars and $723.8714 billion in 2012 dollars, according to the Bureau of Labor Statistics online inflation calculator.

The deficit has also remained at a higher percentage of GDP over the last four years than at any time since the conclusion of World War II (which ended during fiscal 1946, which began in June 1945).


In fiscal 2011, the deficit was $1.2956 trillion, according to the CBO; in fiscal 2010, it was $1.2935 trillion; and, in fiscal 2009, it was $1.412.7 trillion.

President Barack Obama was inaugurated in January 2009, during the fourth month of fiscal 2009, and governed for more than eight months of that fiscal year. In his first full month in office, February 2009 he pushed through a economic stimulus plan that the CBO now says will add $830 billion to the deficit in fiscal year 2009-2019.

In fiscal 2008, the last full year President George W. Bush was in office, the federal deficit was $458.6 billion, according to the CBO.

As a percentage of GDP, the deficits for fiscal years 2009-2012 were greater then the federal deficits in any yea since World War II.

Nice job, Barry.