U.S. deficit reaches $268 billion

WASHINGTON, July 17 (UPI) -- The U.S. government's deficit has reached an estimated $268 billion over the first nine months of fiscal 2008, the Congressional Budget Office says.

The CBO, in its monthly budget review for July, said the figure represented $148 billion more than a similar period last year, though about half of that -- $79 billion -- came from the economic stimulus program, with much more spending expected.

Federal government revenues were about 1 percent less -- $16 billion -- in June 2008 than June 2007 and outlays were about 6 percent more than a year ago, the CBO report said.

The report put government outlays at about $2.2 trillion, compared with receipts of about $1.9 trillion for the fiscal year that began Oct. 1, 2007. That left a deficit of $268 billion.

The White House Office of Management and Budget predicted a $410 billion deficit at the end of fiscal 2008, but expects now a larger figure in revised numbers later this month.

The national debt, which refers to the cumulative amount the government has borrowed and not repaid, is almost $9.5 trillion, the highest in U.S. history, the U.S. Treasury Department says.