September 12, 2009

August U.S. deficit sets record at $111.4B

The U.S. government tied an all-time monthly record in August by racking up a $111.4 billion budget deficit, statistics indicate.

The August figure, fueled by the recession, made for a $1.38 trillion deficit total through the first 11 months of fiscal 2009, The Wall Street Journal reported Friday, noting the deficit for the same period of 2008 was only $500.5 billion.

The newspaper said the White House has predicted a full-year deficit of $1.58 trillion, far outpacing the previous biggest deficit for any fiscal year: $454.8 billion, which was generated in fiscal 2008. That forecast is lower than the $1.84 trillion originally estimated by the administration in February, but the 10-year deficit forecast has since risen by $2 trillion to $9.05 trillion.

The Journal reported that August's $111.4 billion tax revenue shortfall was lower than the $150 billion expected by Wall Street prognosticators, but it marked the 11th straight monthly deficit, only the third time such a string has happened -- the last instance was from May 1991 through March 1992.