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US Budget Deficit Tops $1 Trillion


The U.S. government is spending more money than it is taking in - at an unprecedented level.

The Treasury Department said Monday the federal budget deficit has exceeded $1 trillion for the first time.

In the midst of a severe recession, Washington is spending billions on programs to stimulate the economy. At the same time, tax receipts have slowed because of the downturn.

The wars in Iraq and Afghanistan are also drawing down the government's purse.

The Treasury released new numbers that put the deficit for the month of June at more than $94 billion. At nine months into the fiscal year, that pushes the total above $1 trillion.

Economists say with the government owing that much money, they worry about rising interest rates and inflation.


Some information for this report was provided by AP and Reuters.

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