Budget Deficit Triples To $957B

By Justin Gardner | Related entries in Economy, Money

And that’s just what’s projected for the first six months.

From MarketWatch:

The deficit is well on its way to the $1.75 trillion — or 12.3% of gross domestic product — that the White House has estimated for the full fiscal year, which ends in September.

The deficit through the first six months is more than three times higher than it was at this time last year. The government has borrowed $1 trillion from the public so far this fiscal year.

In March, the deficit widened to $192.3 billion from $48.2 billion in March 2008. Outlays rose 41% to $321.2 billion from $227 billion, while receipts dropped 28% to $129 billion from $178.8 billion.

Between unemployment and tax receipts falling 27% over the same time last year, we’re really taking a beating here. Of course the budget wouldn’t be this much in the hole if not for the bailouts, but we’d still be hurting.

To put this in perspective, here are the tax receipts compared year-over-year for the past 27 years (from Calculated Risk)…



Yikes.


This entry was posted on Saturday, April 11th, 2009 and is filed under Economy, Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Responses to “Budget Deficit Triples To $957B”

  1. John Milligan Says:

    Obama will have to start connecting the vast ends-means disconnects of fiscal policy to make any of his programs half-way sustainable for the long term. To do that he will have to carve out revenue outlays where the money is – that is Entitlements. He may have to forgo the extra mulah for now in education, energy and environment and focus focus focus on Health/Medicare care costs and Social Oecurity outlays – carving from those currently unsustainable programs to reduce the projected outlays and so as not to massively raise taxes. His choice and the “Carve Out” option is the best and most responsible from an Intergenerational responsibility/accountability aspect.

  2. Kevin Jackson Says:

    Reminds me of “Don’t Think of an Elephant” and Norquist’s master long term plan. Let everything go to hell in a handbasket and then if anyone tries to solve it accuse them of raising taxes (oddly enough it costs more to solve long neglected problems — try not repairing a roof or plumbing that needs it if you want to test my theory)

    Don’t know the answers, but I think the problems are bigger because of our neglect and poor planning. It was that crazy liberal, Richard Nixon in 1972 that said we needed to get completely off foreign oil, John Anderson in 1980 that tried to address it again and administrations left and right since than that would rather say and do the easy thing than the right thing who were quite responsible for the messes we are still in.

  3. Chris Says:

    Am I remembering correctly that these numbers for the first time include the two wars?

  4. R.L. Cook Says:

    Any action taken has to take into acccont the priceless free lessons of history, and the consequenses for having taken that action. Not to do so is irresponsible to say the lest. Socialism already has a track record. And it works quite well all the way up to the point that you run out of other peoples money.

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