The US government's deficit ballooned to $326.6 billion in the first nine months of the 2004 budget year, according to a snapshot of US balance sheets released Tuesday.

That's more than 20 per cent larger than the $269.7-billion shortfall for the corresponding period last year. For the current budget year, which began Oct 1, this spending has totalled $1.73 trillion, 6.4 per cent more than the same period a year ago. Revenues came to $1.40 trillion, 3.5 per cent more than the previous year.

So far this year, the biggest spending categories are programmes from the Health and Human Services Department, including Medicare and Medicaid, $407.1 billion; Social Security, $397 billion; military, $322.3 billion; and interest on the public debt, $274.9 billion.

On the revenue side, individual income tax payments came to $596.4 billion for the first nine months of the 2004 budget year, 1.4 per cent less than the corresponding period a year ago.

Corporate income tax payments, however, totalled $140.3 billion so far this year, nearly a 44 per cent increase. The Congressional Budget Office says a little over half of that increase stemmed from rising tax collections as the economic recovery has grown deeper roots.

With a stronger economy expected to help boost overall revenues, some private economists believe the budget shortfall for this year may be about $450 billion. That would be better than earlier projections but would still set a new record in dollar terms.

The government produced a record $374-billion deficit last year.

The Congressional Budget Office has said this year's budget deficit is expected to be less than the $477-billion shortfall the office projected in March. The White House is expected to lower its forecast from the current $521 billion deficit projected for this year whenever it releases updated figures.

In June, the government recorded a surplus of $19.1 billion, smaller than the $21.2-billion surplus for the same month last year. The surplus in June was based on revenues of $214.4 billion and spending of $195.2 billion.

Commentary:
Bush promised to give us surpluses every year of his presidency. He's either a failure or a liar. You get to pick.

As of this writing (July 23, 2004) Bush has created almost $1.6 trillion of debt. He's borrowing and spending more money than Reagan borrowed and spent. In fact, it took Reagan two terms to borrow and spend this much.

Putting this as blunt as possible, Bush has already created as much debt as was created from 1789-1982 or putting it another way, since the insanity of the Reagan tax cut of 1981 the US has created six times more debt than all previous generations. And he wants more tax cuts. Good grief, can we find a more immoral and incompetent man to run our government?