BIG BUCKS: The U.S. federal budget deficit increased by $191 billion in August, hitting $1.16 trillion for the first 11 months of the 2012 budget year, which ends Sept. 30. That’s 6 percent less than the same period last year.
OBAMA’S MILLSTONE: For President Barack Obama, the report highlights a political vulnerability: He will seek reelection after running trillion-dollar deficits each year in office.
LOWER HOPES: The White House in July forecast that the budget gap will total $1.2 trillion this year, down from $1.3 trillion last year. Next year, the administration expects the deficit to fall just short of $1 trillion, at $991 billion.
