Budget deficit rose to $176 billion in October, worse than predicted


In a disappointing start to the federal government's new fiscal year, the nation posted a higher-than-expected $176.4 billion budget deficit for October, the Treasury Department announced Thursday, as bank bailout and stimulus spending kept outlays at a high level, while the recession decreased receipts.

Economists surveyed by Bloomberg News had expected the federal government to post a $150.0 billion deficit for October. The U.S. government posted a $46.6 billion deficit in September to close out FY2009 with a $1.42 trillion deficit – a fiscal year record. The nation's deficit in FY2008 was $454.8 billion. The near-tripling of the deficit compared to FY2008 was mainly due to the bank bailout and the $786 billion fiscal stimulus package.