July 13th, 2009
03:13 PM ET
11 years ago

Uncle Sam is $1 trillion in the hole

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.

Filed under: Treasury
soundoff (100 Responses)
  1. Mike in MN

    I love how all of this is Obamas fault when he inherited the craptastic economy we have today after we spent billions on two wars, one of which wasn't justified and deregulation led to turning the stock market into a giant casino where no one wins.

    July 13, 2009 04:23 pm at 4:23 pm |
  2. Angie in PA

    Way to Go BUSH/CHENEY And Republicans well you moron Republicans put that Idiot in office for 8 Years not to mention the Republican Congress that rubberstamped everything for that disaster of a President thanks a bunch Repukelians!

    July 13, 2009 04:26 pm at 4:26 pm |
  3. aware

    The Barack Obama fiasco continues!

    Go for it Sarah Palin! By 2012 this guy will be toast! 🙂

    July 13, 2009 04:28 pm at 4:28 pm |
  4. Dee

    I am sure if the wars had been on the books are they are now there would not be that much difference in the numbers. We have always spent huge sums of money. The difference now is priorities.

    July 13, 2009 04:29 pm at 4:29 pm |
  5. makesUwonder

    Oh no folks, we're not blaming Bush any longer. This is Obama's baby and he owns it!

    July 13, 2009 04:32 pm at 4:32 pm |
  6. fellow from Chicago

    Be patient my GOP brethen. $1 trillion in the hole today, the health care agenda, cap and trade, and the 2nd stimulus bill tomorrow. 2010 and 2012 looking good.

    July 13, 2009 04:33 pm at 4:33 pm |
  7. TangledThorns

    So... how long till Obama and the Dems pull an excuse to tax the middle class? Oh well, Sarah Palin will fix the mess up quick! **Palin 2012**

    July 13, 2009 04:33 pm at 4:33 pm |
  8. marshall

    All we need is another stimulus package and things will get better.

    July 13, 2009 04:33 pm at 4:33 pm |
  9. Trade Freedom for Security, Lose Both

    Whatever happened to Obama's "no pork spending" mantra?

    July 13, 2009 04:33 pm at 4:33 pm |
  10. Island girl

    I think people are forgetting that the COUNTERFEIT BUCK was passed to President Obama. Amnesia is vice!!

    July 13, 2009 04:33 pm at 4:33 pm |
  11. yuri

    Like we didn't know, eh? Tell us what we do not know. Tell us more gratifyin' news about the economy as a (w)hole. We guess nary a soul can do that.

    July 13, 2009 04:34 pm at 4:34 pm |
  12. Island girl

    I think people are forgetting that the "counterfeit" buck was passed to President Obama. Amnesia is a terrible thing to have!

    July 13, 2009 04:35 pm at 4:35 pm |
  13. history repeats

    Actual Independent

    o ur name is 'actual independant" that must mean its true!! your so convincing...democrats dont look at anyone as "messiahs" thats the religious nuts in the republican party that use that kind of talk. churches were telling their flock of sheep to vote for bush to bring god back to america. you think we are the ones who are voting for messiahs? riiiiiiiiiiiiight

    July 13, 2009 04:36 pm at 4:36 pm |
  14. JoJo

    One of these days will be running out of paper to print more money.

    July 13, 2009 04:37 pm at 4:37 pm |
  15. Kathy

    Obama is the blind leading the blind. Eveybody blames Bush but Obama said he would bring the troups home immediately. Well he sure didn't, because he doesn't have a clue. Then he is sending even more troups to Afganastan. My gosh if Bush did that there would be riots in the streets. But you poor Obama followers believe this MAN (not God or Savior by a long shot) can do no wrong. You can blame Bush for getting us into it, but you'll have to blame Obama for not getting us out of it but putting us into more dept.

    July 13, 2009 04:37 pm at 4:37 pm |
  16. John

    To All the Republican Fans and Idiots:

    1. Obama is Spending. This money will be spent to Generate Economic Growth.

    2. Bush Spent Money on War. Which is Waste. We lost 2800 lives in
    9/11. To remedy 9/11 Bush Invaded Iraq. None of the 9/11 terrorists were from Iraq. We lost another 4300 lives to remedy 9/11. Still there is no guarantee that we are safe.

    July 13, 2009 04:38 pm at 4:38 pm |
  17. Alicia

    Republican Balance Sheet theory:

    WAR = Good Debt


    July 13, 2009 04:39 pm at 4:39 pm |
  18. ArtNYC

    Whole 2008 (Bush) deficit was $454bn
    whole 2009 (Obama) deficit estimated (according to Obama) at $1.84Trillion.

    You do the math...

    July 13, 2009 04:39 pm at 4:39 pm |
  19. Michigan Jim

    It's all Bush's fault! The Great Leader can do no wrong! He will take responsibility once things turn around - until then, it's all Bush's fault!

    July 13, 2009 04:39 pm at 4:39 pm |
  20. Mando

    Freeze spending at current levels. In 6 years the budget will be balanced.

    July 13, 2009 04:40 pm at 4:40 pm |
  21. Leslie

    DEMOCRATS become majority in Congress and Senate since 2006, by 2007, USA is in recession. Democrats love their PORK BARREL, Nancy Pelosi ordered a bigger PRIVATE JET to transport her CORRUPT butt back and forth to California. This is what Democrats is all about ENTITLEMENTS at the back of EVERY hardworking Americans.

    July 13, 2009 04:40 pm at 4:40 pm |
  22. david

    I see all this about how Palin is so stupid, why don't you idiots listen to Dictator Hussein, I mean Obama. Dude can't complete a single thought without help from his propaganda machine, the teleprompter. You libs are pathetic and in case you've noticed his poll numbers are falling at an alarming rate, assuming you ever look at any news source other than CNN or MSNBC. I guess I should get back to work so I can fund all the gimme programs that Barry is ramming through the system.

    July 13, 2009 04:41 pm at 4:41 pm |
  23. Mike Syracuse,NY

    @Dutch/Bad Newz, VA $720,100,000,000,000 is $720 trillion dollars. That's 1000 times what the war has cost to date you dolt. Go back to school and learn basic math. The real cost is $720 billion over 7 years, or $100 billion per year. Obama created a bigger deficit than that in his 1st six months in office and is adding to the deficit at the rate of $100 billion per month. Oh, that's right, he's creating jobs. so why is the unemployment rate still going up not down?

    July 13, 2009 04:46 pm at 4:46 pm |
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