The Congressional Budget Office (CBO), referencing U.S. Treasury data, reported that the federal budget deficit (expenditures less revenues) hit $1.005 trillion for the first nine months of FY2010. This is $81 billion less than the deficit recorded for the same period in FY2009, primarily due to higher corporate tax receipts from larger profits and lower federal spending so far this year. CBO previously estimated that the deficit for all of FY2010 would reach $1.5 billion. If the trend for the first nine months continues, the deficit for the year could equal or be slightly lower than the FY2009 deficit of $1.4 trillion. CBO also reported, in its latest long-term budget update, that the deficit and the federal debt levels are still historically high. According to its new outlook, CBO projects that by the end of this year, the federal debt will be 62 percent of GDP compared to the 40-year average of 36 percent. As the economy continues to recover, CBO expects the deficits to decline significantly. But, CBO is quick to point out that the improving short-term numbers do not signify a lessening of long-term difficulties. In the most optimistic of its long-term scenarios, the federal debt would reach 80 percent of GDP by 2035. Under its most pessimistic scenario, the federal debt could grow to 185 percent of GDP by 2035.