Treasury reports worst April deficit in 26 years

• Government ran up a $21 billion budget deficit in April
• Total deficit for the 1st 7 months of the Fiscal year hit $802 billion compared to a deficit of $153 billion in the same period a year earlier.
• April is suppose to be a good month as taxpayer file their returns and send their check to the Treasury.
• But tax receipts have fallen sharply this year due to the recession and the government’s increased expenditure.
• 4 blow for treasury deficit:
1. Fewer people are working and providing income tax
2. Corporation tax receipts are on a decline
3. Tax cuts aimed at boosting the economy is reducing paycheck with holdings.
4. Government is spending massive amounts of money to try to recapitalize the nation’s financial system.
• March added $191.6 billion to the deficit.
• Total outlays spending for April were $287.1 billion a –10% from $320.5 billion.
• For the fiscal year government has spent $2.06 billion.
• Total tax receipts for April were $266.2 billion. Brining total taken in so far to $125.6 billion.

Source: CNN Money