Three quarters of the fiscal year is comfortably behind us, and the U.S. budget deficit has already passed the $1 trillion mark. In June alone, the federal government spent faster than it earned to the tune of $94.3 billion. The result is below the median predicted by 30 estimates according to a Bloomberg News survey of economists -- projections ranged from $70 billion to $109.3 billion for the month. This is the first time we've had a June deficit since 1991.
In June 2008, the deficit for the month was a much more modest (but still sizeable) $33.5 billion. But last month spending spiked 37% to $309.7 billion, while revenue plunged 17% to $215.4 billion.
So how does the rest of the year look? Pretty grim.
The Office of Management and Budget is predicting a record $1.84 trillion deficit -- four times greater than last fiscal year's $459 billion spread. Increasing jobless rates are likely to exacerbate the current situation, continuing the decline of tax receipts from corporations and individuals. And then there's the next stimulus plan. Another $787 billion is waiting to be spent, and that could push the budget gap wider over the next three months.
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Reader Comments (Page 1 of 1)
7-14-2009 @ 8:22AM
ShaunneyCakes said...
You know, with over 75% of the countries on Earth running a deficit, I am wondering if Federal Budget Deficits even matter anymore. When you have countries running a deficit to finance another countries deficit... it boggles the mind. Maybe it is more abnormal to run a surplus these days...
7-19-2009 @ 6:32PM
votetheday said...
Will Barack the Great prove his words and make the federal deficit of US head down? Moreover, will he be able to half it till his first term in office is over? http://www.votetheday.com/americas-20/us-federal-deficit-halved-by-the-end-of-obamas-first-term-in-office-441/