CBO: Deficit on track to be $1.3 trillion this year

The Congressional Budget Office on Friday said that the federal budget deficit is on track to be $1.3 trillion this year, $14 billion more than the deficit CBO predicted in August.

Despite all the wrangling in the spring between Republicans and Democrats about budget cuts, 2011 saw spending outlays increase by 4.2 percent compared to 2010. This included a 1 percent increase in defense spending and 1 percent increase in Medicaid spending.

Medicare and Social Security spending rose by 4 percent, a foretaste of the ballooning in entitlement expenses expected to occur as baby boomers retire.