National deficit tops $1T for 3rd year in a row

WASHINGTON (AP) — The United States’ budget deficit has topped $1 trillion for a third straight year, adding pressure on Congress and the White House to make more progress a long-term plan to shrink the growing imbalance.

The Treasury Department said Wednesday that the deficit through July totals $1.1 trillion. Three years ago, that would have been a record high for the full year.

This year’s deficit is on pace to exceed last year’s imbalance of $1.29 trillion but fall short of the record $1.41 trillion set in 2009.

For the first 10 months of the budget year, spending has risen 2.4 percent while revenue has climbed 8 percent. That’s a sign that more people are working and paying taxes, although unemployment remains high at 9.1 percent.

Record deficits have forced President Barack Obama and Congress to create a 12-member committee of lawmakers tasked with reducing the red ink over the next decade by $1.2 trillion. If the panel splits and cannot agree on a plan, severe across-the-board spending cuts would go into effect automatically.