WASHINGTON - October 7, 2009 - ABC News' Matthew Jaffe reports: The federal deficit reached a record $1.4 trillion in the 2009 fiscal year, according to an analysis released Wednesday by the Congressional Budget Office.
The report is not the actual deficit figure, which will be released later this month by the Treasury Department.
The year’s record-high deficit of $1.4 trillion equaled 9.9% of the nation’s gross domestic product, the CBO said. It is the highest shortfall relative to the size of the overall economy since 1945.
The record shortfall stems from an increase in spending to stop the Depression, bailout the financial industry, and take over mortgage giants Fannie Mae and Freddie Mac, as well as a decline in tax revenues.
For the year, CBO said revenues dropped by $420 billion from 2008 receipts, a fall of 17%. The revenues totaled about 15% of GDP, the CBO found, the lowest level in more than half a century. Meanwhile, outlays were up $530 billion from a year earlier, an 18% increase, equal to nearly 25% of GDP, the highest level in more than half a century.
The previous record deficit of $459 billion was set last year by the Bush regime.