As predictable as…
This was as predictable as conservatives wishing that Hillary had won. The first month of the FY2010 is already worse than expected.
The $176.36 billion gap is more than $20 billion wider than the shortfall recorded in October 2008, driven up by lower tax receipts, stimulus-related revenue reductions and consistently high government outlays.
Treasury’s monthly budget statement shows receipts were $135.33 billion in October, down 18% from a year earlier and at the lowest level since October 2002. Meanwhile, outlays were $311.69 billion, down 3% from a year earlier and at their second-highest monthly level on record.
The October deficit figure is wider than the Congressional Budget Office’s estimate for a $175 billion deficit in the month and wider than the $165.9 billion expected by analysts surveyed by Dow Jones Newswires.
The Treasury on Thursday also revised September’s deficit to a slightly narrower $46.57 billion, from a previously reported $46.61 billion. Even with the revision, the U.S. in fiscal year 2009 posted a record total budget deficit of near $1.4 trillion — three times its previous record.
At the equivalent of 9.9% of gross domestic product, the figure is the widest U.S. deficit as a share of GDP since 1945.
The staggering number has had U.S. Treasury Secretary Timothy Geithner pledging to rein in the deficit as the nation’s economy recovers.
Expect this to continue, since basically every major policy initiative proposed by the Democrats that govern our dear country will have an adverse impact on economic growth, consumer discretionary spending or employers willingness to hire people. Obama’s first budget projected that we’d have Dot Com boom-like growth to drag us out of this recession. Only a kool-aid drinking fool (or a journalist paid to reprint budget projects as “going to happen”) would believe his policies will do anything to make that likely.
I especially like the part about Geithner getting serious about the deficit. Unless he convinces his boss to start vetoing the bacon fests, otherwise known as congressional spending measures, I’d really like to know how he plans to do that.