October Budget Deficit Hits Record of $237.2 Billion
November 13, 2008 - 4:26 PMThe federal government began the new budget year with a record deficit of $237.2 billion, reflecting the billions of dollars the government has started to pay out to rescue the financial system.
The Treasury Department says the deficit for the first month in the new budget year was the highest monthly imbalance on record. It was more than four times larger than the October 2007 deficit of $56.8 billion.
The big surge reflected the government spending $115 billion to buy stock in the nation's largest banks. Those were the first payments made from the $700 billion government rescue program passed by Congress to deal with the most severe financial crisis to hit the country since the 1930s.
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