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US budget deficit triples to 1.4 trillion dollars

The United States Congress estimates the country's budget deficit has more than tripled to a record 1.4 trillion dollars, or 1,400 billion dollars, in the fiscal year that ended on 30 September. The deficit is around three times the previous year's, which was also a record. The Congressional Budget Office says the deficit is around ten percent of the US gross domestic product (GDP).

 

One reason for the rise in the deficit is a 16.6 percent drop in earnings to 2.1 trillion dollars due to a sharp decline in individual and corporate income taxes as a result of the recession.

 

Spending increased by 17.8 percent to 3.5 trillion dollars. Among the increased outlays were the 91 billion dollar bailout for mortgage firms Fanny Mae and Freddie Mac, 154 billion in bailouts under the Troubled Asset Relief Program, a more than doubling of unemployment benefits to 120 billion dollars and a 100 billion dollar package to stimulate the economy.
 

 

 

United States dollar (printed in 1917)
Photo by Wikimedia Commons

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