Recession-Hit US Falls Further Into The Red breaking news on sky

[link to news.sky.com] US has fallen even further into the red, with its budget deficit reaching a record level.The deficit is expected to hit 1.4 trillion dollars (£877bn) in the 2009 fiscal year, the non-partisan Congressional Budget Office has announced.

The figure is some $950bn (£595bn) greater than the shortfall recorded the previous year.

The 2009 fiscal year has seen the recession enforce a big drop in tax revenues amid a series of extraordinary government spending.

The bailing out of Wall St and the takeover of mortgage giants Fannie Mae and Freddie Mac cost $245bn (£153bn) in emergency spending.

President Barack Obama's economic stimulus bill added a further $200bn (£125bn) in costs.

The accumulation of debts smashes the previous record deficit of $459bn (£287bn), set only last year.

President Obama has attributed the dismal US fiscal situation to the financial and economic crisis he inherited.

Last Edited by Flowerpot on 10/07/2009 06:31 PM