U.S. gov´t runs deficit for 1st time in 26 years

Source: Xinhua | 05-13-2009 07:58

WASHINGTON, May 12 (Xinhua) -- The U.S. federal government ran a deficit in April for the first time since 1983, pushing the red ink so far the current fiscal year to a record 802.3 billion dollars, the Treasury Department reported Tuesday.

The deficit for April was 20.9 billion dollars, in contrast to a surplus of 159.3 billion dollars in the same month of last year.

In the first seven months of the current fiscal year began Oct.1, 2008, the federal budget deficit totaled 802.3 billion dollars, well above the imbalance for all of last year, which was 454.8 billion dollars, a full-year record.

That means the country is well on track to register the first one-trillion-dollar annual deficit in its history.

The Obama administration forecast Monday that the budget deficit would rise to 1.84 trillion dollars in the current fiscal year, about four times the record set last year.

The latest estimate was 90 billion dollars higher 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 worsen by 87 billion dollars than previous estimate to 1.3 trillion dollars, according to the administration Monday.

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 sharp decline in tax revenue.

While tax revenues are down, the government is paying out more than expected for unemployment benefits and food stamps.

Editor:Zhang Pengfei