US budget deficit hits record in February

AFP

The United States scored a record $222.5 billion public budget deficit in February © AFP/File Shawn Thew

WASHINGTON (AFP) – The United States scored a record $222.5 billion public budget deficit in February, not surprising to analysts but still likely to fuel a raging battle in Congress over cutting government spending.

The figure from the US Treasury surpassed the old record of $220.9 billion from the previous February as federal receipts plunged for the month, as they often do in February each year.

For the first five months of the 2011 fiscal year that started on October 1, 2010, the deficit at $641.2 billion was 1.6 percent smaller than the same period last year.

But that is not likely to quell the fight in Congress to slash spending to reduce government debt.

Republicans and Democrats remain far apart on proposed cuts in the current year’s budget and without an agreement by March 18 many government operations could be shut down.

© AFP — Published at Activist Post with license