Brisbanetimes: US deficit at a record $1.5 trillion
US deficit at a record $1.5 trillion
THE United States federal budget deficit has surged to a record high of $US1.4 trillion ($1.5 trillion), with the recession causing tax revenues to plunge as the Government was spending massive amounts to stabilise the financial system and jump-start the economy. The imbalance in the budget year, ending on September 30, more than tripled last year's record. The Obama Administration has projected deficits will total $US9.1 trillion over the next decade unless action is taken. As a portion of the economy, the budget deficit stood at 10 per cent, the highest level since World War II, according to government data released on Friday.
President Barack Obama has pledged to reduce the deficit once the recession ends and the unemployment rate starts falling. But economists worry the Government lacks the will to make the hard political choices to cut spending and raise taxes.
Labels: US Deficit
