Ramping it up

Deficit hits record in just 3 months

Economists, citing expected spending, say the yearly imbalance could top $1 trillion.

"The federal government has already run up a record deficit of $485.2 billion in just the first three months of this budget year. And economists say the imbalance for the full year could easily top $1 trillion, pushed to that eye-popping level by the spending the government is likely to do to combat the most severe financial crisis in generations.

The Treasury Department reported yesterday that the deficit for December totaled $83.6 billion, a sharp deterioration from a year ago, when the government managed a surplus of $48.3 billion.

All the red ink comes from the spending out of the $700 billion financial rescue package - $247 billion spent so far - and a prolonged recession that has depressed tax revenues.

The overall deficit from October through December is the highest on record for a first quarter. It surpasses the mark for a full budget year of $454.8 billion, set last year."