The Federal deficit hit $765
billion in the first five months of the budget year, approximately 65% higher than the gap for all of the prior year. The
Congressional Budget Office estimates the U.S. budget deficit will top $1.2 trillion in the fiscal year 2009. The deficit
reached $192.8 billion in February, a record for the month but below expectations of $205.7 billion. The slow
economy sharply reduced the government’s tax revenue last month to $87.3 billion, 17% below the previous year.
Meanwhile, government spending soared.