The federal budget deficit widened out nominally in October and was wider than expectations for the first month of the government’s fiscal year. A monthly report from the Treasury Department showed that October’s deficit was $120 billion. This deficit was “only” about $98.5 billion in October of 2011. Bloomberg and Dow Jones both had consensus estimates of $113 billion or so for the month.

Spending rose to $304.31 billion versus $261.54 billion a year ago, with income from individuals coming in at $102.04 billion versus $86.75 billion a year ago. Corporate income tax was down to $1.62 billion from $2.47 billion a year ago.

On an annualized basis the fiscal 2012 deficit was over $1 trillion for the fourth year in a row. With the first month at such a wide deficit, the only thing which may prevent the budget from remaining above $1 trillion in 2013 is the coming Fiscal Cliff. As of the latest projection, the White House came up with a budget deficit about $990 billion for 2013.

JON C. OGG

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