Deficit Jumps After Hurricane Payouts
Tuesday, December 13, 2005
The federal deficit rose sharply in November as spending raced ahead of tax receipts. The Treasury Department said yesterday that the $83.1 billion was the biggest imbalance ever recorded in November.
For the first two months of the 2006 budget year, which began Oct. 1, the deficit was $130.3 billion, 13.1 percent higher than the $115.2 billion deficit during the same period last year.
Most analysts are forecasting that the budget deficit will rise to about $350 billion this fiscal year, reflecting in part increased federal spending for reconstruction in the states devastated by the Gulf Coast hurricanes.
The 2005 deficit narrowed to $318.5 billion after hitting an all-time high of $413 billion in 2004.
For November, revenues totaled $138.8 billion, up 3.2 percent from November a year ago. Spending totaled $221.9 billion, up 15.3 percent from November 2004.
Analysts said the increase in part reflected higher payouts of flood insurance claims by the Department of Homeland Security related to Hurricane Katrina.