US increases budget deficit by 2 times

US increases budget deficit by 2 times
# 15 October 2011 13:08 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. The U.S. government posted its third consecutive annual budget deficit in excess of $1 trillion in the fiscal year ended Sept. 30.

The shortfall registered $1.3 trillion in fiscal 2011, up from $1.29 trillion in 2010 and the second-highest on record, according to Treasury Department data issued today in Washington. It reached $1.42 trillion in 2009, the highest ever. The September gap widened to $64.6 billion from $34.6 billion in the same month last year.

“This report confirms that we cannot waste any time in jump-starting economic growth and job creation to lay the foundation for a stronger economy and lower future deficits,” Jacob Lew, director of the White House Office of Management and Budget, said in a statement.

The budget deficit for fiscal 2011 was 8.7 percent of gross domestic product, down from 9 percent in 2010, according to the Treasury data. The gap reached 10 percent of GDP in 2009, the highest since 1945, according to the Congressional Budget Office.

“There is a lot of red ink on the government’s balance sheet and Congress appears clueless on how to make it disappear,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said before today’s report.
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