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Budget deficit falls at sharpest pace since WW2

The budget deficit dropped to the lowest level since 2008 last year, falling to $680B from $1.1T in 2012. The rate of the drop was the sharpest since the end of World War II.

As a proportion of GDP, the deficit was 4.1%, down from a peak of 10% during the depths of the Great Recession.

The fall was due to an increase in federal tax revenues amid economic growth and tax hikes, and to a fall in spending. A slowdown in health costs also helped.

Comments (4)
  • thirunagar
    , contributor
    Comments (31) | Send Message
    Thanks to the energy boom
    28 Feb 2014, 06:12 AM Reply Like
  • Bear Bait
    , contributor
    Comments (720) | Send Message
    and the revival of the auto industry that every one thought we should have abandoned and let sink has had nothing to do with it?
    28 Feb 2014, 07:41 AM Reply Like
  • Papaswamp
    , contributor
    Comments (2218) | Send Message
    Easy to do when the debt ceiling battle causes the treasury to have to jiggle the numbers into the next budget year. This fiscal year... Debt has already risen over $600B.
    28 Feb 2014, 08:48 AM Reply Like
  • Alex2322
    , contributor
    Comments (328) | Send Message
    Incremental increases in taxes would help the economy too.
    1 Mar 2014, 01:47 AM Reply Like
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