Correction appended

The U.S. federal government's budget in fiscal 2011 is expected to show a higher deficit than last year - nearly $1.5 trillion compared with nearly $1.3 trillion, according to a 10-year outlook report unveiled by Congressional Budget Office  on Wednesday.

The 2011 fiscal year runs from October 1, 2010 to September 30, 2011. The projections by the non-partisan government agency are based on the assumption that tax and spending policies unfold as specified under current law, the report states.

The deficit is expected to fall to $1.1 trillion in 2012 and $704 billion in 2013, the report said. Starting in 2014, the deficit will fall to a 10-year low of $533 billion that will slowly rise to $763 billion annually by 2021, according to the report.

The outlook comes as President Barack Obama prepares to release his 2012 budget proposal to Congress in mid-February. There are some cuts and spending freezes expected, but many specifics have not yet been released.

The 2011 deficit is equivalent to 9.8 percent of the U.S. Gross Domestic Product. GDP is the size of the entire economy including all goods and services sold. In 2010, the deficit was 8.9 percent of GDP. In 2009, it was 10 percent of GDP

The report was released on the CBO's website and is named Budget and Economic Outlook: Fiscal Years 2011 through 2021.

Correction: An article about the U.S. deficit outlook published on January 27, 2011 incorrectly stated that deficits 2013, 2014 and 2021 were in $704 million, $533 million and $763 million respectively. They are $704 billion, $533 billion and $763 billion.