Federal deficit hits all-time high of $1.42 trillion
WASHINGTON. - The federal budget deficit surged to an all-time high of $1.42 trillion as the recession caused tax revenues to plunge while the government was spending massive amounts to stabilize the financial system and jump-start the economy.
The imbalance for the budget year ended September 30, more than tripled last year's record. The Obama administration projects deficits will total $9.1 trillion over the next decade unless corrective action is taken.
As a portion of the economy, the budget deficit stood at 10 percent, the highest since World War II.
President Barack Obama has pledged to reduce the deficit once the Great Recession ends and the unemployment rate starts falling.
Economists worry the government lacks the will to make the hard political choices to cut spending and raise taxes to get control of the imbalances.