NEW YORK (CNNMoney.com) - The federal budget deficit increased in June as spending surged and tax receipts sunk, pushing the total budget shortfall to over $1 trillion in the first 9 months of the fiscal year, according to a government report released Monday.
The Treasury Department said the June deficit was $94.3 billion, a reversal of fortune from the $33.5 billion surplus the government managed in June 2008. In May, the deficit was $189.7 billion.
Economists surveyed by Briefing.com had forecast a budget deficit of $97 billion. The Congressional Budget Office had also forecast a $97 billion shortfall last month.
The deficit was the largest shortfall the government has ever recorded in the month of June, and the first time it has come up short in June since 1991, according to a Treasury official. The largest monthly deficit on record was February 2009, when the government increased its shortfall by $193.9 billion.
For the first nine months of the fiscal year, which began in October, the total deficit hit $1.09 trillion.
In the first nine months of 2008, the United States government was $285.9 billion in debt. For all of fiscal 2008, the government racked up a $454.8 billion shortfall.
Spending surging, income shrinking: The government has been spending at a breakneck pace to slow the deceleration of the economy in the current recession. At the same time, tax revenue from companies and individuals has declined, adding to the shortfall.
So far in fiscal 2009, the government has spent $2.67 trillion, but it has only taken in $1.59 trillion.
The government collected $685.5 billion in individual income taxes so far this year, a 22% drop from the $877.8 billion the government had taken in during the first nine months of 2008.
Corporate income taxes plunged 57% to $101.9 billion in 2009, down from $236.5 billion in the first nine months of fiscal year 2008.
Looking forward: The Treasury expects that its expenses will continue to outstrip its income for the rest of this fiscal year and into next year.
By the end of fiscal 2009, the government expects to be in debt by $1.84 trillion. The Treasury said it expects that its expenditures to approach $4 trillion while its income will only be $2.16 trillion.
For fiscal 2010, Treasury said it expects to have a budget deficit of $1.26 trillion, with $3.59 trillion in expenses and a slightly more robust $2.33 trillion in receipts.
I'm so happy!!!
Let's go spend another trillion!
this one should be good...pass the popcorn...
first GOPer to blather about socialism gets a candy
and the way this congress and president . spends money it will only get worse ... lord help us......
A trillion bucks in the hole–and swarms of idiot Democrats pushing for yet another so-called "stimulus." That, as far as I'm concerned, is just little shy of criminal stupidity.
Let me guess it is the Rep(fill in your silly insulting words) fault?
When will enough be enough and the kool-aid effects end? I am Scared for us all. I hope the hate can stop and the good decisions can start to be made.
God Bless America, her people and her President.
Before the 'hater pounce' begins, all we ask is that you get a little more creative with your spin of the truth. If we have to read your venom at least keeep us entertained!......
And they're off.........!
It's Bush's fault Obama had to spend all that money on his pork filled stimulus bill that did nothing. We need to study why pigs stink. We need to spend a couple trillion more so I can have free health care. Time for the rich to fork over some more of their money, the rest of us need it!
"Spending surging, income shrinking: The government has been spending at a breakneck pace to slow the deceleration of the economy in the current recession. At the same time, tax revenue from companies and individuals has declined, adding to the shortfall."
Translation – it's not working.
To those who'll plead for time for the government to get things working – don't let the government take over health care. Time is not the ally of a sick person. 6-12-18 months to get things going won't help someone who's ill.
Way to go, Congress. I hope you are proud of yourselves.
It's just part of the Presidents "HOPE" platform. Which boils down to: "The President HOPE's we can pay it"!
Yet another historic first for Obama. Way to go!!!!
How much of this $1 trillion did you get? If your answer is $3,000 (plus $3,000 for each of your children) then you broke even, otherwise, you got ripped off - again.
Wow, where are all the democrats and their whinning about budget deficits in the Mr. Bush's administration and they are on course to really blow the budget this year. We have no jobs, high deficits, so to be run away inflation. Doesn't this remind you of those Jimmy Carter years where we had high employment 12%, inflation of 16% and interest rates at 21%. The latter is coming, just wait. Have fun you stupid democrats and your artifically minulated majority. Like Minnesota and Al Franken, they did it in Washington State with the "mom in tennis shoes", Cantwell and the Govenor. Isn't it amazing that you could have more votes cast then registered voters in Minnesota and we complain about other nations and voter fruad. Give me a break.
I blame the republicans even though democrats have been in charge since 06. Being democrat since the first of the year has been so cool. Making up facts like saying we have been in charge for 6 months instead of 2 years.
I could go so many places with this but no need to pour gas on the fire.
The party of "No Clue" is setting another first – record spending for the month of June versus a budget suplus during this month last year. At least Obama is good at something even though it happens to be spending us into a hole we can never climb out of....
Only a trillion? The spending has barely begun for this administration. Maybe Obama should have taken a few business courses in his life to understand how money works. Just goes to show that a community organizer does NOT make a good president. No real life experiences to relate to the working class.
That averages out to $90,000 for each US citizen. Nice to know before a child has worked a day in his life he is burdened with this nonsense. Gee, thanks Obama. Why spend mine, when I can spend yours, your children's, your grand children's and your great-grandchildren's.
This kind of profligate spending is wrong no matter what the politicans and economists say. We will pay a high price in the future for the temporary feel-good of deficit spending, even if it does help provide some stimulus.
I am firing all incumbents appearing on my 2010 ballot.
Uh oh. Here it comes. The Obama bashers will try and blame the deficit numbers on the new President. They won't even take the time to read the article and see the dates are mostly during the Bush administration.
Once again, you can't fix stupid (or ignorant)!
Isn't $1 trillion dollars about the same as the cost of the Iraq War?
This country needs either fiscally responsible leadership or a balanced budget amendment and SOON!!
Carter was the worst president in history and now we have term 2 with Obama at the helm. Don't these guys ever learn from past mistakes? It took Reagan to turn around the mess Carter made. Obamas mess is HUGE. I pity the poor guy who has to clean that up!
May God have mercy on each one of us !
Stop Palin's cult campaign..