U.S. Deficit Falls to $680 Billion

Photo Credit: Treasury The federal government’s latest annual deficit is the smallest it’s been since 2008, according to Treasury Department data released Wednesday.

At $680 billion, the fiscal 2013 deficit is 51% less than it was in 2009, when it hit a record high nominally of $1.4 trillion.

As a percent of the economy, it’s also considerably smaller than it’s been in the past five years, coming in at 4.1% of gross domestic product. By contrast, the annual deficit in 2009 topped 10% of GDP. And last year it was 6.8%.

Overall, Treasury said higher receipts accounted for 79% of the decline in the deficit from last year.

Several factors have contributed to the strong improvement in the nation’s near-term fiscal picture. They include an improving economy and a mix of fiscal restraint — primarily, the expiration of stimulus measures, the imposition of across-the-board budget cuts known as the sequester, and tax increases on high-income households during the 2013 fiscal year, which ended September 30.

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