CBO: US Federal Budget Gap $1.1 Trillion Through First 9 Months Of FY09

The U.S. federal government's budget deficit totaled $1.1 trillion through the first nine months of fiscal 2009, the nonpartisan Congressional Budget Office reported Wednesday.

The figure was more than $800 million higher than for the comparable period of fiscal 2008, the CBO said.

Included in this deficit are outlays of $147 billion related to the Treasury's financial rescue efforts through the Troubled Asset Relief Program, while a further $87 billion stems from the bailouts of Fannie Mae (FNM) and Freddie Mac (FRE).

The federal government recorded a deficit of $97 billion in June, the CBO estimates, the first time in a decade the budget has been in the red for the month. Generally because of the timing of individual and corporate tax payments, June is a surplus month.

Both corporate and individual quarterly payments of income tax declined sharply in June.

Much of the increase in federal government spending - which combined with the weaker revenues account for the burgeoning deficit - are due to efforts to stabilize the economy through the stimulus plan.

The CBO forecasts that the federal government will record a budget deficit of $1.8 trillion in fiscal 2009, the highest ever deficit figure by more than $1 trillion.

-By Corey Boles, of Dow Jones Newswires; 202-862-6601; [e-mail]