The fiscal year of 2010, which ends September 30th, is $93 billion less than the deficit recorded at the same point in 2009, reports the Congressional Budget Office. A principal reason for this deceleration is a decrease in annual expenditures of the Trouble Asset Relief Program (TARP) – the program has went from spending $169 billion in 2009 to receiving $108 billion in 2010 – a turnaround of $277 billion. This sharp turnaround, however, has been partially offset by numerous budgetary increases, including but not limited to increases within social security (6% increase), medicare (6%), medicaid (4%), unemployment benefits (41%), and defense (5%).
The deficit for 2010 is currently at 1.17 trillion, as the chart below shows, but even though the total is less than 2009, expenditures have increased about 10%. As a result, 2011 could see the deficit jump to a record level.