WASHINGTON — The federal budget deficit narrowed slightly in December compared with a year ago, but the deficit for the entire fiscal year is still on pace to exceed $1 trillion.
The government ran a deficit of $80 billion last month, down 12.4 percent from the previous December, the Treasury Department said yesterday. Through the first three months of the current budget year, the deficit totals $370.8 billion, an improvement of 3.1 percent from the same period a year ago.
Private economists expect that the tax-cut package signed into law last month will lead to a much larger deficit while helping to boost economic growth.
The tax package provided a one-year reduction in Social Security taxes for individuals and accelerated tax breaks for businesses that invest in new equipment.
It also extended for two years George W. Bush-era tax cuts.
The estimated cost of the package is $858 billion, an amount that will be added to deficits over the next two budget years.