Federal Budget Deficit More Than Doubles, to $407B

Stimulus package contributed; figure is expected to break record in fiscal '09
By Wesley Oliver,  Newser Staff
Posted Sep 9, 2008 4:27 PM CDT
The federal deficit will climb to $407 billion in the fiscal year that ends this month, more than double last year's $161 billion, congressional budget analysts reported today.   (Index Stock)
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(Newser) – The federal deficit will swell to $407 billion in the fiscal year that ends this month, the Washington Post reports, a figure more than twice last year’s total. Congressional budget analysts blamed the surge on weak revenue growth and accelerated spending, including the $168 billion economic stimulus package. They also said the next president could face a $438 billion deficit.

Today’s news sparked partisan bickering: One Democrat called it “another reminder of the dismal economy and budget Republicans are leaving others to sort out.” The White House accused Dems of trying to inject billions in “extra spending” to appropriations bills. Congress’ budget director noted that Washington’s takeover of Fannie Mae and Freddie Mac won’t significantly affect the figure.