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Wednesday, January 13, 2010

U.S. Treasury Deficit More than 10% of GDP

Bloomberg details:

The U.S. registered its largest December budget deficit on record as higher unemployment reduced revenue and the government spent money to help the economy recover.

The excess of spending over revenue rose to $91.9 billion last month, compared with a deficit of $51.8 billion in December 2008, the Treasury Department announced today in Washington in its monthly budget statement. The U.S. has posted a record 15 straight monthly deficits.

The December figure caps a calendar year in which the deficit widened to an all-time high, featuring unprecedented government spending to help engineer an economic recovery. The deepest recession in seven decades also resulted in the worst year for tax collections since 2004, according to calculations by Bloomberg News, as companies suffered and more Americans were shuffled to the unemployment line.

Rolling 12 Month Receipts - Outlays - Surplus/Deficit as a Percent of GDP

Please note that Q4 '09 GDP is estimated at 4% annualized.

Source: Treasury / BEA