CBO: Budget deficit hit record $1.4T in 2009

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Associated Press

Posted on October 7, 2009 at 6:03 PM

Updated Wednesday, Oct 7 at 6:41 PM

WASHINGTON (AP) — Congressional analysts say the federal budget deficit tripled to a record $1.4 trillion for the 2009 fiscal year that ended last week.

The unprecedented flood of red ink flows from several factors, including a big drop in tax revenues due to the recession, $245 billion in emergency spending on the Wall Street bailout and the takeover of mortgage giants Fannie Mae and Freddie Mac. Then there is almost $200 billion in costs from President Barack Obama's economic stimulus bill.

The previous record deficit was $459 billion and was set just last year.

Obama has attributed the nation's dismal fiscal situation to the financial and economic crises he inherited.

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