US deficit hits record
Jamaica Observer/AP
December 13, 2005
WASHINGTON (AP) - The US government's budget deficit rose sharply in
November as spending raced ahead of tax receipts. The Treasury Department
reported yesterday that the deficit totalled $83.1 billion (euro69.7 billion),
the highest imbalance ever recorded in November.
For the first two months of the 2006 budget year, which began Oct 1, the
deficit totals $130.3 billion, (euro109.27 billion) 13.1 per cent higher than
the $115.2 billion (euro96.6 billion) in red ink run up during the same period
last year.
Most analysts are forecasting that the budget deficit will rise to around
$350 billion (euro293.5 billion) this year, reflecting in part increased
federal spending for reconstruction in the states devastated by the Gulf Coast
hurricanes.
The 2005 deficit narrowed to $318.5 billion (euro267.09 billion) after
hitting an all-time high in dollar terms of $413 billion (euro346.33 billion)
in 2004.
For November, revenues totalled $138.8 billion (euro116.39 billion), up 3.2
per cent from November a year ago. Spending totalled $221.9 billion (euro186.08
billion) , up 15.3 per cent from November 2004. Analysts said the increase in
part reflected higher payouts of flood insurance claims by the Department of
Homeland Security related to Hurricane Katrina.
The faster rise in spending compared to revenues left the deficit at $83.1
billion (euro69.7 billion) , the largest imbalance ever recorded for a
November, and up 43.5 per cent from the deficit of $57.3 billion (euro48.05
billion) last November.
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