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From the AP via Forbes:
WASHINGTON — The federal budget deficit hit an all-time high for the month of April as government revenue fell sharply.
The Treasury Department said Wednesday the April deficit soared to $82.7 billion, the largest imbalance for that month on record. That was significantly higher than last year's April deficit of $20 billion and above the $30 billion deficit private economists had anticipated.
The government normally runs surpluses in April as millions of taxpayers file their income tax returns. However, income tax payments were down this April, reflecting the impact of the recession which has pushed millions of people out of work.
Total revenues for April were down 7.9 percent from a year ago, dipping to $245.3 billion.
The Obama administration forecast in February that the deficit for this year will hit an all-time high of $1.56 trillion, surpassing the current record of $1.4 trillion set last year. Many private economists believe this year's imbalance will be closer to the $1.4 trillion set last year and that deficits will remain high for years to come.
The trillion-dollar-plus deficits are being driven by the impact of the recession, which has cut government tax revenue while driving up spending.
Analysts estimate that roughly one-third of the increase in the deficits over the past two years came from lost revenue – the result of fewer people working and lower corporate profits. Another third is from increased government spending that normally occurs in a downturn, such as higher payments for unemployment benefits and food stamps. The final third reflects the added government spending on the $787 billion stimulus bill and the $700 billion financial bailout.
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