US records federal budget gap of US$1.3t
By Martin Crutsinger |
October 18, 2010, Monday
|
Print Edition
Print Edition
THE Obama administration has said the federal deficit hit a near-record US$1.3 trillion for the just-completed budget year.
That means the United States government had to borrow 37 cents out of every dollar it spent because tax revenues continued to lag while spending on food stamps and unemployment benefits rose as joblessness neared double-digit levels in a struggling economy.
While expected, the eye-popping deficit numbers provide Republican critics of US President Barack Obama's fiscal stewardship with fresh ammunition less than three weeks before the midterm congressional polls. The deficit was US$122 billion less than last year, a modest improvement.
Voter anger over deficits and spending are a big problem for Democrats this election year. Republicans are slamming Democrats - who face big losses in November - for votes on Obama's US$814 billion economic stimulus last year and on former President George W. Bush's US$700 billion bailout of Wall Street.
Democrats say the recession would have been worse if the government hadn't stepped in with those programs to prop up the economy. They also note that most of the bailout, which began during the previous administration and was supported by many Republicans in Congress, has been repaid.
The administration is projecting the gap for the 2011 budget year, which began on October 1, will climb to US$1.4 trillion.
That means the United States government had to borrow 37 cents out of every dollar it spent because tax revenues continued to lag while spending on food stamps and unemployment benefits rose as joblessness neared double-digit levels in a struggling economy.
While expected, the eye-popping deficit numbers provide Republican critics of US President Barack Obama's fiscal stewardship with fresh ammunition less than three weeks before the midterm congressional polls. The deficit was US$122 billion less than last year, a modest improvement.
Voter anger over deficits and spending are a big problem for Democrats this election year. Republicans are slamming Democrats - who face big losses in November - for votes on Obama's US$814 billion economic stimulus last year and on former President George W. Bush's US$700 billion bailout of Wall Street.
Democrats say the recession would have been worse if the government hadn't stepped in with those programs to prop up the economy. They also note that most of the bailout, which began during the previous administration and was supported by many Republicans in Congress, has been repaid.
The administration is projecting the gap for the 2011 budget year, which began on October 1, will climb to US$1.4 trillion.
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