$1.2 trillion deficit looms Housing collapse and financial turmoil leads to steep rise in estimated U.S. shortfall for '09, Congressional Budget Office says.
Last Updated: January 7, 2009: 5:00 PM ET
NEW YORK (CNNMoney.com) -- The U.S. budget deficit in 2009 is projected to spike to a record $1.2 trillion, or 8.3% of gross domestic product, the Congressional Budget Office said Wednesday.
The dramatic jump to the highest-ever deficit in dollar terms compares to a $455 billion deficit in fiscal year 2008 and $161 billion in 2007. The estimate does not account for the massive spending and tax cuts proposed in President-elect Barack Obama's economic rescue plan.