U.S. federal deficit hit a record 176.4 billion
U.S. dollars in October, reported the Treasury Department on Thursday. The budget imbalance outpaced economists' expectation of 150 billion
dollars.
The deficit for the 2009 fiscal year, which ended on Sept. 30, set an all-time record in
dollar terms of 1.42 trillion dollars, tripling last year's record. Treasury Secretary Tim Geithner said last month that the skyrocketing
federal deficit was inherited from the George W. Bush administration.
Besides, it was a result of the government's actions to tackle the worst economic recession since the Great Depression of 1930s.
The U.S. administration has launched a 787-billion-dollar stimulus bill to boost the
economy and has spent another 700 billion dollars to stabilize the financial system since President Barack Obama took office at the beginning of the year.
Experts worry the federal deficit would be unsustainable if the government did not impose
fiscal discipline."The president recognizes that we need to put the nation back on a fiscally sustainable path," White House Budget Director Peter Orszag said.
But critics argue that the government has not yet taken the problem seriously. Economists worry such deficits could push up interest rates, adding a further drag on the fragile economic recovery.