US Budget Deficit on to a Record Height
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Here’s something I happened to catch on a News channel I wanted to share.
The budget deficit in US swelled to a record $455bn in the fiscal 2008. A slowing economy which adversely affected revenues, spending on wars, bank failures and soaring unemployment related benefits have put pressure on exchequer.
These figures is a new record and broke the previous record of $413bn set in fiscal 2004, which was the fall out of tax cuts and massive spending on Iraq wars.
The Treasury’s recent plan to spend $250 bn to buy preferred stock in financial institutions is a kind of cash outlay and will add to the budget deficit. But the program and expanded Federal Reserve lending operations also could produce some revenue gains.
7 Comments
Interesting article.
Yes, but with the economy being what it is we don’t really have a choice but to run up an even bigger deficit. If we don’t the advertisers here won’t have money to spend and we won’t be earning anything on Triond.
Regards,
Inna
It’s a catch 22. Sometimes it is necessary to choose the least of the evils.
I think we need to look at the fact that things would be much worse without the bailout.
We have not seen much improvement, but it could be much worse.
A reminder of the awful times we are facing.
This is one of the worest times in history after the Great Depression but let’s hope for a New Year and a New beginning. It is affecting every country around the globe.
Speaking of a deficit, here in Canada, it seems that even with all the measures our government took to prevent such a deficit from happening, it is still going to occur.
Look on the bright side. At least gas is down to $0.78/liter on this side of the border, and stores are holding massive 50% discount sales even though Christmas is still a little over a month away.