CBO: US Federal Budget Gap $1.1 Trillion Through First 9 Months Of FY09
July 08 2009 - 7:02PM
Dow Jones News
The U.S. federal government's budget deficit totaled $1.1
trillion through the first nine months of fiscal 2009, the
nonpartisan Congressional Budget Office reported Wednesday.
The figure was more than $800 million higher than for the
comparable period of fiscal 2008, the CBO said.
Included in this deficit are outlays of $147 billion related to
the Treasury's financial rescue efforts through the Troubled Asset
Relief Program, while a further $87 billion stems from the bailouts
of Fannie Mae (FNM) and Freddie Mac (FRE).
The federal government recorded a deficit of $97 billion in
June, the CBO estimates, the first time in a decade the budget has
been in the red for the month. Generally because of the timing of
individual and corporate tax payments, June is a surplus month.
Both corporate and individual quarterly payments of income tax
declined sharply in June.
Much of the increase in federal government spending - which
combined with the weaker revenues account for the burgeoning
deficit - are due to efforts to stabilize the economy through the
stimulus plan.
The CBO forecasts that the federal government will record a
budget deficit of $1.8 trillion in fiscal 2009, the highest ever
deficit figure by more than $1 trillion.
-By Corey Boles, of Dow Jones Newswires; 202-862-6601;
corey.boles@dowjones.com