President Obama’s 2013 budget due out Monday will estimate the deficit for 2012 to be $1.33 trillion, higher than the $1.29 trillion deficit in 2011, according to senior administration officials.
The increase happens largely because the budget assumes enactment of a $350 billion stimulus package, including extension of the payroll tax cut. That package is a scaled-down version of the $447 billion American Jobs Act that Obama proposed in the fall.
The budget estimates that the deficit in 2013 will be $901 billion. This means that Obama will fail to cut the deficit in half after his first term, something he once vowed to do.