Saturday, Oct 17th, 2009
The US government closed its 2009 fiscal year with a record budget deficit of 1.417 trillion dollars, some 962 billion dollars higher than the prior year, officials said Friday.
The deficit amounted to 10 percent of US gross domestic product (GDP), the highest since 1945.
The huge jump in the budget shortfall stemmed from both declining revenues and a massive ramping up of spending in a fiscal stimulus to jolt the world’s largest economy from a prolonged recession.
Receipts for the fiscal year that ended in September totalled 2.105 trillion dollars while outlays were 3.522 trillion dollars, the Treasury said.