Budget Deficit Narrows to $80 Billion in December

The federal budget deficit narrowed slightly in December compared to a year ago, but the deficit for the entire year is still on pace to exceed $1 trillion.

US Capitol Building with cash
US Capitol Building with cash

The Treasury Department says the government ran a deficit of $80 billion last month, down 12.4 percent from the previous December.

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.

However, private economists expect that the tax-cut package signed into law last month will lead to a much larger deficit while also helping to boost economic growth.