The federal deficit totaled $91.6 billion in the first month of Fiscal 2014, down from $120 billion a year earlier, according to the Treasury Department. This follows a total deficit for Fiscal 2013 of $680 billion -- the first time in four years the annual deficit was below $1 trillion.
But total federal debt continues to climb above $17.1 trillion, which is why Congress will soon need to approve another increase in the debt limit. In addition, government projections show the annual deficit will begin climbing again within a few years.
So although the deficit is currently dropping, fiscal reforms remain essential.