All this government spending to spur on the economy has to come from somewhere. However, when tax receipts don’t match the government’s spending, it leaves Uncle Same with quite a lot in the hole. The federal budget deficit is now over $1 trillion.
Numbers from the Treasury Department revealed that June deficit was at $94.3 billion – a stark contrast to the $33.5 billion surplus from June 2008. May 2009′s deficit was larger at $189.7 billion. Other forecasts pegged a higher number for June with Briefing.com and the Congressional Budget Office placing the figures at $97 billion.
The total deficit is now at $1.09 trillion for the first nine months of the fiscal year which started last October.
The government heightened its spending in order to bailout large corporations. Tax collections from companies and individuals declined contributing to the shortfall.
Source: CNN
