THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING

US budget heads toward record deficit

Associated Press / February 11, 2011

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WASHINGTON — The federal government’s budget deficit grew by $50 billion in January and is expected to finish the budget year as the highest in history.

The Treasury Department said yesterday the deficit was one of the highest ever for the month of January, second only to the $63 billion deficit recorded two years ago.

For the first four months of this budget year, the deficit totaled $418.8 billion, 2.7 percent lower than the same period a year ago.

However, this improving trend is expected to reverse in coming months. The Congressional Budget Office is projecting a record deficit of $1.5 trillion this budget year, which ends in September.

The estimate was revised upward last month based on a tax-cut package brokered between the White House and Republicans that will add $400 billion to this year’s red ink.

Associated Press