Budget deficit falls at sharpest pace since WW2

|By:, SA News Editor

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.