These numbers will shock you to the point of possum numb.
The CBO is projecting a $1.4 trillion deficit for 2009 and it's now 9.9% of GDP. (makes ya wonder if they tweaked it to avoid that rounding up to 10%).
From the CBO blog:
CBO estimates, in its latest Monthly Budget Review, that the federal budget deficit was about $1.4 trillion in fiscal year 2009, nearly $1 trillion greater than the shortfall recorded in 2008. Relative to the size of the economy, the 2009 deficit was equal to 9.9 percent of GDP (the highest since 1945), compared with 3.2 percent in 2008. As shown in the table below, both lower revenues and increased spending contributed to the growth in the deficit. Revenues fell by almost $420 billion (or 17 percent) below receipts in 2008. Total revenues in 2009 were about 15 percent of GDP, the lowest level in over 50 years. Conversely, outlays increased by over $530 billion (or 18 percent) in 2009, to nearly 25 percent of GDP, the highest level in over 50 years.
Guess what's eating up the money? You guessed it....TARP, Fannie Mae and Freddie Mac....and the Stimulus package. 60% of the increases are caused by this. More interesting is the CBOs numbers are not the total committments of these measures.
- TARP - $154B
- Fannie/Freddie - $91B
- Stimulus - > $100B