The deficit for this year already exceeds that for all of last year. Reports Reuters:
The United States racked up a record $485 billion deficit for the first three months of fiscal 2009, exceeding the $455 billion gap for all of the previous year, the U.S. Treasury said on Tuesday.
In December, the government posted a deficit of $83.62 billion versus a year-ago surplus of $48.26 billion — a wide swing that the Treasury attributed to a steep drop in corporate tax receipts and outlays from its financial rescue fund.
The December budget gap was in line with consensus forecasts of an $83 billion deficit from economists polled by Reuters.
The combined October, November and December deficit was nearly five times the year-ago budget hole of $107 billion, according to Treasury data.
The ballooning deficit could constrain President-elect Barack Obama’s ability to revive the U.S. economy with a massive fiscal spending program this year. The deficit for fiscal 2009, which started Oct. 1, is expected to hit a staggering $1.186 trillion, according to the non-partisan Congressional Budget Office. This is even before an estimated $800 billion in proposed tax cuts and stimulus spending from Obama.
The December U.S. budget outlays rose to a $321.44 billion, a record for that month, from $228.72 billion in Dec 2007. The outlays included about $55 billion in spending from the Treasury’s $700 billion financial rescue fund, known as the Troubled Asset Relief Program.
We just can’t afford much more of this stimulus!