The United States Budget deficit for the fiscal year ending September this year, will suppress one trillion dollars, according to estimations made by the Congressional Budget Commission (CBO).

The report published by the Commission shows that the gap between government spending and tax collection in 2012 is expected to reach $ 1.1 trillion, compared with an earlier assessment from August which predicted a deficit of 973 billion dollars.

This is the worst figure, in nominal terms, since the outbreak of the Global financial crises in 2008, when it climbed to a peak deficit of $ 1.4 trillion.

The Budget Committee estimated that the deficit will continue to decline, and fall sharply by 2020, assuming that policy makers will carry out the planned alterations with the tax policies, government spending,cuts in the Pentagon and other government agencies budgets.

However, the report stressed that higher taxes combined with lower government spending would lead to slowdown in economic growth and a higher unemployment rate.

In addition, the Budget Committee estimated that the unemployment rate will climb to 9.2% by this year’s end.