Deficit Reduced By More Than Half Since 2009

Deficit Reduced By More Than Half Since 2009

Washington — The Office of Management and Budget and the Department of the Treasury on October 30 released the fiscal year (FY) 2013 budget results, which showed that the government is continuing to make significant progress in reducing the deficit.

The final 2013 deficit was $680 billion, down $409 billion from  the 2012 deficit and $293 billion less than forecast in President Obama's April budget. As a percent of Gross Domestic Product (GDP), the deficit fell to 4.1 percent, a reduction of more than half from the deficit that the Administration inherited when the President took office in 2009 — the fastest decline in the deficit over a sustained period since the end of World War  II.

According to Sylvia Matthews Burwell, Director of the Office of Management and Budget, the government has already locked in more than $2.5 trillion of deficit reduction over the next decade under the President's leadership through a combination of  spending cuts and revenue increases resulting from higher taxes on the wealthy.

The significant decrease in the deficit from last year was due to a combination of higher receipts and lower outlays in 2013, the result of a stronger economy, the  expiration of certain tax cuts for high income Americans and spending reductions like those achieved from the troop drawdown in Afghanistan. 

Looking forward, the Administration remains committed to working with Congress to enact proposals that will strengthen the economy and middle class by making needed investments in areas like education, infrastructure, research and development, and national security, while putting the debt as a share of the economy on a downward path.