July 9, 2009 / 2:05 AM / 8 years ago

U.S. deficit hits $1 trillion so far in FY2009-CBO

2 Min Read

WASHINGTON, July 8 (Reuters) - The U.S. budget deficit climbed to an estimated $1.1 trillion during the first nine months of the 2009 fiscal year, the U.S. Congressional Budget Office said on Wednesday.

The nonpartisan budget analysis for Congress showed that receipts in June were an estimated $46 billon, down 18 percent from the same period in 2008. June marked the 14th consecutive month in which receipts were lower than those in the previous year.

Corporate receipts dropped sharply during the first nine months of fiscal 2009, falling by $133 billion or 56 percent, largely due to continued weakness in corporate profits, the CBO said.

CBO has estimated that the budget deficit would likely crest at $1.8 trillion this fiscal year, blowing away previous records. It has also forecast that the deficit would likely drop to almost $1.4 trillion in fiscal 2010, which begins Oct. 1.

The deficits have also expanded because of the $787 billion economic stimulus package Congress approve, as well as outlays for the $700 billion financial bailout program that has aided struggling banks and U.S. automakers.

Reporting by JoAnne Allen; Editing by Kim Coghill

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