US deficit reaches record $1.4 trillion

From Wikinews, the free news source you can write!
Jump to navigation Jump to search

Friday, October 9, 2009

According to the US Congressional Budget Office (CBO), the US budget deficit reached a record $1.4 trillion in the fiscal year to September 30.

The deficit was about 9.9% of the country's GDP, over three times the level in 2008 and the highest since the Second World War ended. Economical analysts had initially predicted a deficit of $1.6 trillion.

The deficit was blamed on decreased tax revenues and higher government spending. The CBO also said on Wednesday that tax revenue dropped by 17%, or $420 billion, to its lowest level for over half a century.

The previous record deficit was in 2008, at $459 billion.


Sources

Bookmark-new.svg