Budget Deficit Hits $1.8 Trilly

The current year’s federal budget deficit, according to congressional economists, will top $1.8 trillion, the biggest ever by far. And their projection for the fiscal 2010 budget shortfall is tickling $1.4 trillion, putting both estimates much higher than they were in forecasts back in January.

Associated Press:

The federal budget deficit for the current year will top $1.8 trillion under the latest estimates produced by congressional economists, say Capitol Hill aides briefed on the figures.

The Congressional Budget Office’s estimate of President Barack Obama’s budget for next year show a worsening picture for 2010 as well, with a deficit of almost $1.4 trillion expected under administration policies. Obama had predicted about $200 billion less.

The aides spoke on condition of anonymity in advance of public release of the figures later Friday.

The latest figures, fueled by the $700 billion Wall Street bailout and diving tax revenues stemming from the worsening recession, would shatter the previous record for a federal shortfall of $459 billion, set just last year.

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mariopiperni.com / Mario Piperni