US monthly deficit at record 220.9 billion in February

The US government's monthly budget deficit rose to a record $220.9 billion in February 2010, the treasury department said today.

This brings the total US government deficit for the first five months of the current fiscal (October-February 2009-10) to $651 billion, compared with a $589 billion deficit in the similar period of the previous fiscal.

The February budget deficit is up 14 per cent year-on-year and is the biggest monthly shortfall in US history.

The widening budget deficit was boosted by a 17 per cent jump in government spending, which hit a record $328.429 billion in February. The budget deficit in January was $42.6 billion.

Overall deficit, including last year's carryover deficit of $1.4 trillion of the Obama government, now stands at $2.06 trillion against a projected deficit of 1.56 trillion.

Testifying before the House Appropriations Committee on the US federal budget proposals, treasury secretary Tim Geithner said the government need resources for investing in four areas: repairing and reforming the financial system to make it safer and help assure that its benefits are broadly shared; boosting voluntary compliance with tax code to pay for vital government functions; advancing global economic interests and national security; and rebuilding the treasury's professional staff.