Deficit Reached $1.4 Trillion in FY 2009, CBO Estimates

 

The government's $787 billion economic recovery package, enacted in February, also contributed to the huge surge in outlays for Fiscal Year 2009.
Courtesy of ProgressOhio.org

Congressional Budget Office said the federal government's budget deficit for Fiscal Year 2009, which ended Sept. 30, totaled about $1.4 trillion -- a $950 billion increase over the shortfall for FY 2008.

America's budget deficit for FY 2009 represents 9.9 percent of the country's Gross Domestic Product, up from 3.2 percent of GDP in FY 2008. That percentage is the highest shortfall, relative to the size of the economy, since 1945, CongressDaily reported. This budget deficit portends a continued long road to recovery.

Federal revenues for FY 2009 were nearly $420 billion, or 17 percent, below receipts in FY 2008 and totaled 15 percent of GDP -- the lowest level in more than 50 years.

Outlays by the federal government increased by more than $530 billion, or 18 percent, during FY 2009 -- almost 25 percent of GDP. About half the spending increase resulted from outlays for the Troubled Asset Relief Program, enacted last year to stabilize the financial system. Payments to Fannie Mae and Freddie Mac, which were taken over by the government last year.

– Courtesy of AASHTO