Posted October. 16, 2008 04:54,
The U.S. federal budget deficit skyrocketed to a record 454.8 billion dollars in the 2008 fiscal year (Oct. 2007 to Sept. 2008).
The U.S. Treasury Department said Tuesday that the deficit was nearly triple last years figure of 161.5 billion dollars and higher than the previous record of 413 billion dollars set in 2004.
The deficit represented 3.2 percent of U.S. gross domestic product, up from last years 1.2 percent.
Experts cited as reasons for the huge deficit increased state spending on things such as economic stimulus measures and decreased revenue from slower economic growth and strained capital markets.
The deficit is expected to dramatically rise no matter who the next president is because Washington is planning to inject 700 billion dollars for its financial bailout plan. Presidential candidates Barack Obama and John McCain have also made numerous campaign pledges that require large spending.
The U.S. Federal Reserve also announced a temporary lifting of the upper limit on its currency swap line with the Bank of Japan to restore stability in shaky international financial markets.