US budget deficit to be $1.3 trln this year – CBO

The U.S. budget deficit for the current fiscal year will come in at $1.3 trillion, down slightly from the record $1.4 trillion deficit posted last year, the nonpartisan Congressional Budget Office said on Tuesday.

Deficits will shrink over the coming decade as the country recovers from the deepest recession since the 1930s, but lawmakers need to increase revenues and cut spending to keep the federal debt from harming the economy, the budget office said.