Posted On: December 11th, 2008
Source: Financialpost.com
WASHINGTON -- The United States posted a record US$164.4-billion budget deficit for the month of November, the Treasury said on Wednesday, as the costs of a bank bailout and year-long recession continued to mount.
The deficit is expected to widen sharply in the near term due to slowing U.S. growth and plans for massive government spending to boost the economy once President elect Barack Obama takes office on Jan. 20.
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The Treasury said November's US$309.2-billion outlays included US$76.5-billion in purchases of equity in banks and US$23.2-billion to buy mortgage backed securities from Fannie Mae and Freddie Mac.
Wall Street analysts polled by Reuters had expected a US$172.5-billion budget deficit compared with a shortfall of US$98.2-billion in November 2007.
A Treasury official said November's outlays were also lowered by US$20-billion of entitlement and benefits payments that in fact went out in October.
Receipts in November were US$144.8-billion compared with US$151.1-billion in the same month last year.
The U.S. deficit over the two months of the fiscal year to date now stands at a record US$401.6-billion, compared with the most recent official budget estimated for the full fiscal year of a deficit of US$481.8-billion.
Outlays so far are a record US$711.2-billion, including US$191.5-billion to inject fresh capital into banks under the Troubled Asset Relief Program and US$44.7-billion to buy mortgage backed securities from the government sponsored enterprises.