CBO says payroll tax extension adds to deficit

WASHINGTON, March 13 Tue Mar 13, 2012 3:36pm EDT

WASHINGTON, March 13 (Reuters) - This year's U.S. budget deficit will swell by an additional $92 billion from estimates made in January because of a subsequent payroll tax cut extension, the Congressional Budget Office said on Tuesday.

The CBO, in an update to its budget estimates based on current law, said it now expects a $1.171 trillion deficit for fiscal 2012, which ends Sept. 30. Previously, it forecast a $1.079 trillion deficit.