FINANCIAL CRISIS

US budget deficit to top $1 trillion

The Congressional Budget Office said it expects the US budget deficit to hit $1.2 trillion for the 2008/2009 fiscal year. This would push it to three times the last budget deficit.

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AFP - The provisional US budget deficit in 2008/2009 will hit a record 1.2 trillion dollars, the Congressional Budget Office said Wednesday.

The deficit for the fiscal year 2007/2008 which ended in September reached 438 billion dollars, or 3.1 percent of the nation's gross domestic product, the office said in a report.

However, the figures do not include the cost of a huge economic stimulus plan put forward by the future administration of president-elect Barack Obama which would cost upwards of 775 billion dollars.

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