U.S. Budget Deficit Narrowed largest annual budget deficit on record

The government reported its largest annual budget deficit on record .Last month the deficit totaled $140.4 billion compared with the October 2009, when it was $176.4 billion . The budget statement was released from Washington.

The Congressional Budget Office estimates the budget this fiscal year will exceed $1 trillion for the third time, the economic recovery that was started last year in June has helped generate more revenue for the Treasury.

The newly elected Republican majority in the house of Representatives and President Barack Obama, a Democrat in the White House may prove that cutting the budget a challenging task .Chris Rupkey, chief financial economist, said before the report,” No relief will be felt at the start of the new year., as we are facing a gridlock in Congress and little action will be taken in the next year to cut back federal spending enough to bring the budget deficit below $1 trillion.” According to the median of 35 projections in a Bloomburg News Survey, an October budget that economists forecasted was a deficit of $140 billion.

On November 5, the National Congressional Budget Office also estimated a shortfall of $140 billion. In October spending for the entire government dropped 8.1 per cent to $286.4 billion compared with payments in the same month last year.