Obama leads America into overspending and tremendous budget deficits

On Monday the Congressional Budget Office released the report that shows the U.S. budget deficit stood for about $1 trillion during the first six months of this fiscal year which began on October 1, according to Reuters. The report says that the government incurred $953 billion in red ink from October through March including $290 billion for the Troubled Asset Relief Program which is three times more than the deficit of 2008 that accounted for $313 billion.

During the six months period receipts dropped nearly $160 billion, 14%. About half of this decrease, $73 billion, was caused by the fall in corporate income tax receipts. According to the CBO the drop was the largest in more than 30 years. Still, there is place for more losses to come this fiscal year. The CBO forecasts red ink could total more than $1.8 trillion with the slight decrease to $1.4 trillion in 2010 fiscal year.

Apart from dropping receipts and bailout funds aimed at reviving the Wall Street authorities injected a great amount of money to boost the economy on the whole. $787 billion in stimulus package were approved by the Congress in February. Most of these funds will be likely spent to provide tax cuts as well as to finance infrastructure and other projects.

Meantime, President Barack Obama tried to pass a $3.55 trillion budget for fiscal 2010 while lawmakers are making every effort to maximally reduce it so as to prevent deficit increase with Republicans expressing their indignation with the proposed budget’s too much spending and tax increases.