2012 Federal Deficit Shrinks To Less Than $1 Trillion | Under President Obama, the nation’s deficit will shrink to less than $1 trillion in 2012, the Treasury Department announced yesterday. The deficit in 2011 and 2010 was $1.3 trillion. Treasury projects that the budget deficit for fiscal year 2012 will come in at $996 billion. Additionally, as a result of the debt super committee’s failure to reach an agreement, an automatic $1.2 trillion in cuts will kick in over the next decade. Obama has pledged to veto any attempt to curb those cuts.