U.S. budget deficit to top $1.8 tln in 2009 fiscal year

Source: Xinhua | 05-12-2009 09:18

WASHINGTON, May 11 (Xinhua) -- The U.S. federal budget deficit will rise above 1.8 trillion dollars in the current fiscal year, about four times the record set last year, the White House said Monday.

The latest estimate of budget deficit for the current year ending September 30, 2009, was 89 billion dollars more than the red ink of 1.75 trillion dollars projected in President Barack Obama's budget for 2010 fiscal year, which he submitted to Congress in February.

The deficit for the 2010 fiscal year beginning Oct. 1 this year will climb by 87 billion dollars to 1.3 trillion dollars.

The worsening budget deficit reflects the soaring costs of the government's economic stimulus package and financial rescue program, and the recession, which has resulted in a sharp decline in tax revenue. While tax revenues are down, the government is paying out more than expected for unemployment benefits and food stamps.

The new figures came as the White House is about to complete its 3.6 trillion dollar budget plan for 2010, adding details to some of its tax proposals and ideas for producing health care savings.