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Tuesday, October 14, 2008
It's Official: Another Deficit Record Set
Treasury Secretary Henry Paulson took time out of his busy schedule nationalizing recapitalizing banks to announce with OMB Director Jim Nussle that the federal budget deficit for FY 2008 was $455 billion or 3.2 percent of GDP. The deficit- a record in nominal dollars -- had been projected by the Congressional Budget Office last week to be $438 billion.
At $455 billion, the deficit for FY 2008 was $293 billion higher than the deficit for FY 2007. The deficit increased to 3.2 percent of GDP, up from 1.2 percent of GDP for FY 2007. As a percentage of GDP, the FY 2008 deficit was the largest since the deficit of 3.6 percent of GDP in FY 2004, but below the peak postwar deficit in FY 1983 (6.0 percent).
Joint Statement of Henry M. Paulson, Jr., Secretary of the Treasury, and Jim Nussle, Director of the Office of Management and Budget, on Budget Results for Fiscal Year 2008
Posted by Craig Jennings
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