Ouch:
WASHINGTON (Dow Jones)–The fiscal year-to-date U.S. budget deficit broke past $1 trillion in June, a grim testament to the recession and financial crisis.
The federal government spent $94.32 billion more than it made in the ninth month of fiscal 2009, the Treasury Department said Monday in its monthly budget statement.
Aid to spur the slumping economy and a government bailout of Wall Street are driving the deficit. There are three months left in fiscal 2009.
“Many private analysts still expect the fiscal-year deficit to top $2 trillion,” Insight Economics analyst Steven Wood said.
The growing imbalance has fanned fears of higher interest rates and inflation.
Last year, in all of fiscal 2008, the deficit was $454.8 billion. That was a record.