US budget deficit at $1 trillion

The US budget deficit has moved above $1 trillion (£616bn) for the first time – with three months of the financial year remaining, official data show. The government stepped up spending to counter the recession, and the bailout of financial institutions has taken a huge chunk out of government finances. Falling tax revenues and unemployment benefit spending have also contributed. The figure compares with $455bn for the whole 2007/8 financial year, but the 2008/9 deficit was expected to soar. … US budget deficit at $1 trillion