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Fiscal Cliff (2013)

White House: Budget deficit to rise to $600B

The White House on Friday predicted that the government's budget deficit for the soon-to-end fiscal year will hit $600 billion, an increase of $162 billion over last year's tally and a reversal of a steady trend of large but improving deficits on President Barack Obama's watch.

The disappointing figures, while expected, come after the deficit has steadily declined since the huge $1.4 trillion deficit Obama inherited after the deep 2007-2009 recession and the associated fiscal crisis.

The improving economy, tax increases on higher-income earners and cuts to annual agency budgets have helped close the gap over Obama's tenure. Many economists say the longer-term picture is...

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