U.S. deficit holds basically steady at $1.29 trln (by Greg Robb)

WASHINGTON (MarketWatch) - The nation's budget deficit in the 12 months ended Sept. 30 was essentially unchanged at $1.29 trillion from the year before, the Treasury Department said Friday. In nominal terms, the deficit inched higher by $4 billion or 0.3% this year. It is now the second largest deficit on record. However, the deficit shrank as a proportion of the economy. The deficit narrowed to 8.7% of gross domestic product in 2011 from 9.0% in 2010. This is the third straight year of a deficit over $1 trillion. Excluding the surplus of $67 billion from Social Security and other trust funds, the on-balance deficit narrowed to $1.365 trillion from $1.371 trillion last year. Outlays rose 4.2% to $3.60 trillion. Receipts rose 6.5% to $2.30 trillion.