The immediate primary cause of the swing from Federal budget surpluses in 2000 and 2001 to a budget deficit in 2002 was: 1 the acceleration of inflation in 2001 and 2002. 2 the tax cuts of 2001. 3 spending increases relating to the wars in Afghanistan and Iraq. 4 the recession of 2001. ANSWER: 4 the recession of 2001.