HIGHEST BUDGET DEFICIT EVER
Red ink hits $454.8 billion in 2008, more than double that of 2007; economists say bailout to weigh on next year.
Last Updated: October 14, 2008: 4:48 PM ET
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WASHINGTON (AP) -- The federal budget deficit soared to $454.8 billion in 2008 as a housing collapse and efforts to combat the economic slowdown pushed the tide of government red ink to the highest level in history.
The Bush administration said Tuesday the deficit for the budget year that ended Sept. 30 was more than double the $161.5 billion recorded in 2007.
It surpassed the previous record of $413 billion set in 2004. Economists predicted a far worse number next year as the costs of the government's rescue of the financial system and the economic hard times hit the government's balance sheet.
Some analysts believe that next year's deficit could easily top $700 billion, giving the next president a formidable challenge.