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.
Accounting 101. Revenue-Expenses equals Net Income. The government needs to cut programs that do not work and cut the size of government. As an Obama supporter, I believe many programs will get cut but to starve off the inevitable, drastic measures must be taken now. Additionally, taxes will go up. However, President Madison said that taxes will never be a huge source of revenue for a particular governement. The truth of matter is that the system is messed up. Yet, I am able to sleep at night cause of a mighty GOD we serve who sits high and looks low. My advice to everybody is to stay healthy, get plenty of rest, and get out of debt! Watch Dave Ramsey! That's what I do every night on FOX BUSINESS!!!
Running the Bush /Cheney War is and was very expensive! Thanks to Congress and greedy Congressmen with their own agendas and of course those AIG bonuses, past , present and future, I am surprised we are only a trillion in the hole, and I cannot imagine what a trillion is , I think in hundreds and on occasion thousands! Cannot get upset over what I cannot fathom.
FACTS, folks – look at the facts. And history, look at that too.
This article says:
'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' –
so that was when H.W. left office to Clinton (like Father like son, failed us completely). Clinton left with a $500 billion dollar surplus. Give Obama some time. Then, when he fixes everything, we can make it even better by electing a conservative republican who won't tax us.
Oh, wait......that might not work, huh? It never has before, has it? Hey, at least they're pro-war, anti-abortion. Bet you wish we had some of that 'War' money now huh....YOU BETCHA!!!
Taking in less, spending more and figuring out what the next tax increase looks like. Yes, the Democrats are in control!
Looking forward to 2012!
When you're in a hole...
Looks like the party of "No" may become the party of "Told You So!"
This is just the tip of the iceberg. By the time Barry Hussein gets done destroying the country the deficit will be the least of our worries.
Goodbye America. It was nice knowing you!
Wow – must be having a hard time collecting taxes from ILLEGALS and those in other countries that took our jobs.
Typical Obama disciple: "Well Bush spent $1 trillion, so why can't Messiah Obama?"
Since when do 2 wrongs make a right?
The sheer stupidity of most Obama supporters is amazing.
And that's the money we know about. Bush spent about 1 trillion dollars on his criminal enterprise in Iraq, enriching his corporate supporters while getting 50,000 US soldiers killed or wounded...and Bush didn't even count this deficit spending as actual debt.
Its the Dems and the Repubs fault. There is no "small" government, spend less party anymore. Its time for "Change", and the change starts with getting these established parties out of Washington.
Way to go OBUMMER. You're making BUSH look great.
Keep raising taxes, and keep watching the tax revolts.
So McCain/Palin hit the circuit pre-election yelling that action needed to be taken quickly on the Bailout package and now they are blaming Obama??? I do not agree with another bailout but the Republicans have got to stop flip-flopping on this topic, pick a path and HELP execute. Twisting in the wind is all I see them doing now.
And the point is? Seems the point is just to smack Obama upside the head while totally ignoring that Bush is the one that made us have to go this deep as it was, and the fact that Bush more than doubled the debt in his first term in office. Not to mention that the actual amount that we are in debt for is more like 11 trillion total.
Some reality please.
@ Mike Syracuse,NY July 13th, 2009 3:56 pm ET - Triple the annual deficit of Bush's last year. Change we can believe in.
Cute Mike, very cute. Are you forgetting that your precious Bush was keeping the cost of the wars off the books? President Obama is including the costs of the wars so I imagine that would account for much of the money. At least we know what Bush's cowboy heroics cost this country.
Well you DUMOcrats be happy when you are paying more taxes, for I will not. I'm cheating on my taxes like most of the DEMOCRATS in office.
GO ahead, praise the glory of TAX and SPEND.
Because you'll be paying the taxes, and no new jobs.
Don't hire a democrat is my new motto.
Wow, it ain't cheap repairing an ailing economy. Especially when you have to do it with a treasury that's already been drained by eight years of geopolitical meddling and warmongering. That's for DARN sure.
This Budget Deficit brought to you today courtesy of Ex-President BUSH and 'I'm Not Part of the Executive Branch' CHENEY!
Thanks guys! We USED to haver a balenced budget before you two came into power.
This is NOBAMA's Economy now.
Try if you can, but Bush did not spend the money to get us here. NOBAMA and the DEMS did. Trust me if this had gone the other way, the DEMS would be taking credit, and we know that would NEVER happen;-)
Sorry guys you can not have it both ways..................... Admit it and let's work TOGETHER to fixed what has broken.
so what, its because of george bush and hush-hush cheney,(cnn) why dont you get the real facts to the people ,and stop being so (bogus ) wtih these (headlines) you just can not accept ,that no matter what (headlines ) you put out about the spending,does not spark any movement, the nay -sayers is (cnn) get real, your acting worse than kids ,who cant get candy at the store. .the spending is justified,for the survial of the country. (cnn) needs to grow up, and report the truth, instead of (right wind nonsense) it s really getting old(cnn)........
With all the extra money Obamatopia is costing me, all I have is Spare Change You Can Believe In.
It never ceases to amaze me how you repubs never take responsibility for ruining the economy. Eight years of the Bush buddies, bank meltdown from shear creed, and let's not forget the Savings &Loan scandal( with yet another Bush involved). Why do guys keep telling the Lies, you are fiscally responsible ?_
No one ever wants higher taxes. Everyone hates taxes in general. But, we use tax money to pay off our national debt. I wouldn't mind paying more/higher taxes as long as our debt goes down!
@ Bill, Bloomington, who said "Making up facts like saying we have been in charge for 6 months instead of 2 years."
Or you know...IGNORING facts like the Dems not having a super majority for 2007 and 2008 and the GOP filibustering like gangbusters, and Bush setting a record with the veto pen during that period.
BTW, the whole "the Dems have been in control since 2006" argument didn't work during the election...you might want to rethink using it. Scoreboard: November 4 2008.