CBO Projects Deficit at $1.3 Trillion

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The federal government says the U.S. will have another huge budget deficit this year.

The deficit for the latest fiscal year came in just under $1.3 trillion, only slightly under the record high, according to a report released Wednesday by the Congressional Budget Office.

The latest government report also forecasts deficit spending will add a total of $8.5 trillion to the national debt over the next decade.

The national debt currently stands at more than $14.6 trillion.

The report also says the economy will remain weak into next year and unemployment will still be above 8 percent in 2013.

However, there was also some hope in the government forecast. The report by congressional budget analysts indicate that the budget gap will substantially decrease in the next 10 years if the Bush-era tax cuts and other measures would be allowed to expire according to schedule.

The reduction of the deficit would be the result of expected rise in revenues and the debt reduction deal signed into law by President Barack Obama this month. The deal would reduce deficit by $3.3 trillion over the next decade.

The CBO previously estimated in April that the country's deficit would reach $1.4 trillion.

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