Problems look like never ending for Obama government. The US government completed its 2009 fiscal year (Oct’08-Sep’09) with a record breaking 1.417 trillion dollars budget deficit. The gevernment is trying to pour resources to contain a serious financial crisis that plunged the nation into the great economic recession. The budget deficit is 962 billion dollars which is higher than the privious year deficit and equals 10 percent of US gross domestic product (GDP), the highest since 1945. Receipts for the fiscal year that ended in September totaled 2.105 trillion dollars while outlays were 3.522 trillion dollars as per the US treasury records. The main reasons for this huge jump in the budget shortfall are sited as declining revenues and a massive ramping up of spending in a fiscal stimulus to recover the world’s largest economy from a prolonged recession.

Despite being on the backfoot from the huge deficit, US govt officials are pointing that the deficit is 162 billion dollars lower than the 1.580 trillion dollars forecasted by the administration of President Barack Obama. Officials also saying that the financial year 2009 deficit was largely the product of the spending and tax policies inherited from the previous administration, exacerbated by a severe recession and financial crisis that were underway as the current administration took office and criticized Bush government for bad policies. Now looking forward it is getting difficult for Obama’s goverment to contain the deficit for nexr fiscal year. However looking at the past records, the president is looking committed to work with Congress to bring them down to a sustainable level.