U.S. Treasury: $401 Deficit in First Two Months of FY2009

Press Releases and Statements Read time:

Navigate to:

  • Table of Contents
U.S. Treasury: $401 Deficit in First Two Months of FY2009

In the Monthly Treasury Statement of Receipts and Outlays of the U.S. Government, the Treasury Department estimated that the first two months of fiscal year 2009 recorded a deficit of $401 billion.  This two-month deficit will be almost as large as the entire 2008 deficit of $455 billion, with the current deficit representing a post-war record for a two month period.  The Treasury recorded the deficit in November as $164 billion and $237 billion in October. 
 
"Even in these times of record-breaking deficit spending, running a deficit of over $400 billion in just two months is simply staggering," said Maya MacGuineas, President of the Committee for a Responsible Federal Budget. 
 
The Treasury's $401 billion deficit estimate is much higher in the first two months of the current fiscal year than the $267 billion estimate from the Congressional Budget Office (CBO).  The Treasury accounts for costs associated with the Troubled Assets Relief Program (TARP) on a cash basis, while the CBO accounts for TARP costs on a risk adjusted present value basis, based on assumptions that assets purchased with TARP funds will be eventually resold and thereby generate revenues for the federal government in the future. 
 
"Given the immediate dangers our economy faces, it is clear that some kind of stimulus is necessary and appropriate," said MacGuineas.  "But no one wants to recover from the current crisis today only to stumble into the next economic crisis tomorrow, a crisis caused by trillion dollar deficits becoming the norm.  We need to address the fiscal health of our nation, and soon."

The Committee for a Responsible Federal Budget is a bipartisan organization committed to educating policy makers and the public about issues related to fiscal policy. The Committee is located at the New America Foundation. Please visit www.crfb.org.

America’s Overdose Crisis
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up
Quick View
America’s Overdose Crisis

America’s Overdose Crisis

Sign up for our five-email course explaining the overdose crisis in America, the state of treatment access, and ways to improve care

Sign up

MORE FROM PEW

A presentation being given by a businesswoman to a group of participants at a business conference. Four Plan Features Can Boost 'Retirement Readiness'
A large group of people in formal or traditional attire stands together on a stage, with a digital background depicting marine life and the large text “WTO Agreement on Fisheries Subsidies.” WTO Needs to Redouble Its Effort on Fishing Subsidies
A man in a winter hat and sunglasses kneels on a rocky shoreline in front of a campfire, holding a metal mug with gloved hands. Behind him, in the water, a motorboat is moored to the shore. Cliffs rise on both sides of the water. Why Newfoundland’s South Coast Fjords Are Sacred
An illustration of a couple holding hands walking away from an outline of houses behind them Pathways to Homeownership: Housing in America
Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics
Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.
Quick View
Pills illustration

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.