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.
Hey Henry Miller,
"Criminally stupid" would have been if this country had elected McCain and the Wasilla Hillbilly. The thought sends chills down my spine!
George Washington in his farewell address to the nation said,
"As a very important source of strength and security, cherish public credit. One method of preserving it is, to use it as sparingly as possible; avoiding occasions of expense by cultivating peace, but remembering also that timely disbursements to prepare for danger frequently prevent much greater disbursements to repel it; avoiding likewise the accumulation of debt, not only by shunning occasions of expense, but by vigorous exertions in time of peace to discharge the debts, which unavoidable wars may have occasioned, not ungenerously throwing upon posterity the burthen, which we ourselves ought to bear."
When did the government foget this wisdom and when did we the voters decide that this wisdom was no longer valid? Is it too late to recapture the intent and meaning of this wisdom? I think not if we as voters will find and vote for candidates that are more interested in principle vice politics. Politics is about expedience not about strategy or good governance. Policy decisions are driven by re-election concerns and not what is best for the nation.
shocker. Get used to this. This is Obama's America. This is in a bad economy, but when all of Obama's programs hit, this will be how America is. High unemployment, high deficits, and high taxes. This is awful. Why isn't the media calling him out?
There they go again. This is shaping up tp be the carter presidency part11. I guess we should expect a Reagan like in 2012.
I blame the GOP for this because if they had not stunk up the place for the past 8 years Obama would have never gotten in. I am sure the GOP would like to do something about all of this but they can't because they have been beaten to a stand still so now you will have to take the advice of the Great MaHaRushie and just grab your ankles and take it all for the next 8 years. You better hope Obama is right because other wise you would have taken it Rush style for 8 years for nothing. Smooches!
Congratulations President Obama.
Congratulations Nancy Pelosi.
Congratulations Harry Ried.
$1 trillion deficit AND you managed to erradicate over 2 million jobs.
That is the democrat way of managing the economy. Now on to health care and "global warming". Let's see if we can get the deficit to $2 trillion and unemployment up by another 4,000,000.
dominican mama 4 Obama:
Nice rebuttal. No facts, just blame. Hope your happy with the change you voted for, even more so the day you become unemployed.
Peanuts. Just how many trillion do you the property values are in poor Detroit ??? You have to put the wealth of this country in perspective to a national budget. It may have to go much higher to keep us competitive in a Global Economy........................which by the way has helped incurr these HUGE deficits
Here's an interesting perspective. The Dems of course will blame Bush and The Repubs will of course blame Obama, and the Independents will blame each. This is an indictment on government (public sector) actions regarding the economic crisis. What solutions do representatives of the private sector have to offer to reverse the crisis and get us consistently going in the right direction? We keep hearing from government officials. Now what do our business leaders have to say? Do we have any left? Or is it too late and they've already sold us out (legally or illegally) and moved on to the next growing countries in the world to invest in? Will real AMERICAN business leaders please step forward. We're waiting.
War in Iraq = $10 billion a month
March 2003 – Present = $720,100,000,000,000
-My first point is that this was a war of choice and not of necessity.
-Secondly, this war continues and is still costing taxpayer money
The point I'm getting at is what our current President has been saying all along: We inherited this debt
I HOPE we have some CHANGE left when Chairman Obama is done raiding the treasury to pay off all his various constituencies & union bosses.
We use to be Dems, and now Independents as we have seen enuf.
DEMOCRATS ENJOY spending, and spending more, and of course taxing more....they don't mind taxing more as they don't pay their taxes ! Check the Obama ADM as it's loaded with tax cheats.
Obama is a novice, and he will never get it – he will be campaigning 2 yrs from now as there is not a camera he does not love..he's nothing more than a foolish celebrity.
Hey, let's tax and spend some more!!!!
sniffit. the numbers speak for themselves. obama and crew are spending like drunken sailors and you cannot blame bush for it. running a deficit > 2X bush's is simply financial irresponsibility. the dems days in power are limited my friend.
keep being blind to the truth.
Don't you get it yet?
When Obama gave Hamas (a terrorist organization) $800,000 of American Taxpayers money you would think ALL Americans would get it.....shows how foolish AMericans are re Celebrity.
Shawn – GA
the president has been working since january. so thats a little over 6 months. if you are trying to blame this on him then you are nuts! plain and simple. did you think he was going to reverse everything in a matter of months? do you think that is even possible on any level!?!? this is going to take ALOT of time and effort to fix the hollowed out deregulated, privatized government bush created in 8 yrs!!! grow up and try to admit what the people you voted for REALLY DID TO THE REST OF US!!
Chump change...Obama will tack on another trillion easy!
We can thank the idiotic media for being more concerned about ratings/money than the truth about Obama.
A heavy price is going to be paid unfortunately.
Most of the comments here show stunning ignorance of the facts:
Republican administrations brought the national debt from under $1 trillion when Reagan became president to nearly $11 trillion when Obama became president; Bush handed off the worst economy since the Great Depression to Obama; if the stupid Republicans had their way, there would have been no bail-outs and no stimulus, and the economy would have continued its collapse, resulting in a WORSE SITUATION FROM EVERY PERSPECTIVE.
Write your elected officials – rantling on here does no good – but twenty or thirty million letters would help the postal service make ends meet and would get the attention of the guys and gals we sent to Washington.
Triple the annual deficit of Bush's last year. Change we can believe in.
I'm with you Old Farmboy.
Bill, Bloominton IL
oooh man you republicans are hilarious. the democrats were not IN CHARGE in 2006. they TOOK AWAY the republicans dominance in 2006 by evening it up. it was 50/50 for the first time in about 15 yrs!!! you people are just too funny. and if you blame it on the republicans why would you take a jab at democrats for being in charge?? possibly because you are pretending to be an independant?? we are not as gullible as you republican sheep that dont believe in evolution that nonsense doesnt work with most of us. we use logic NOT faith to make decisions.
yeah, I always knew the Dems are "against" deficits:
That's why it's now four times larger than las year this time...
It's only the beginning. Wait another year when we're in the same boat economically and the debt increases to 2 trillion.