Friday, March 12, 2010
Between enormous expenditures and sagging revenues, the U.S. government in February managed to enlarge the deficit by $1 million every 11 seconds. February went down as the worst ever for monthly shortfalls, at $220.9 billion. This total was 14% higher than February 2009, which set the previous record. February is traditionally a bad month for deficits because that is when the government sends out tax refund checks.
The government is on pace to set the record for annual budget deficits, with 2010 figuring to be $1.56 trillion. Last year, it was $1.4 trillion. Things probably won’t get better in 2011, which is expected to post at least a $1 trillion gap. If this happens, it will mark the first time in U.S. history that the country endured three straight years of $1 trillion-plus deficits.
-Noel Brinkerhoff
U.S. Monthly Budget Deficit Balloons to a Record (by Meena Thiruvengadam and Jeff Bater, Wall Street Journal)
Budget Deficit Sets Record in February (by Martin Crutsinger, Associated Press)
Monthly Treasury Statement (Financial Management Service) (pdf)
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