The Treasury Department is projecting an October deficit of $120 billion, up from the $98 billion over the prior year period, Reuters reports.
Citing economic analysts, the report said the recent deficit estimate puts the number above the $114 million projected.
The department also said outlays grew from $262 billion in the prior-year period to $304 billion in October 2012
Reuters reported that although the US ended fiscal 2012 with a budget surplus, this is the fourth consecutive year the budget deficit exceeded $1 trillion.
The fiscal 2011 budget deficit was $1.287 trillion, while 2012 ended with $1.089 trillion.