US deficit highest since end of World War II…$1.4 trillion

Despite all the measures the United States adopted this year in face of the economic crisis that swept across the world; still deficit rate was as high as revealed at the end of the US financial year.

The US budget deficit hit a record $1.4 trillion in the year to 30 September, US Congress estimates say.

They had predicted a $1.6 trillion deficit but were told to change the estimate.

The deficit is calculated as being the highest since the end of World War II. It is anticipated as being equal to 9.9% of gross domestic product (GDP), BBC reported.

The original estimate of the deficit was reduced due to increased government spending and the huge drop in tax revenues.

The Treasury Department is supposed to report the actual deficit later this month.