Record Budget Defecit Projected for Fiscal 2011

According to Congressional Budget Office, the budget deficit may reach as high as $1.5 trillion for this fiscal year (Oct 1, 2010-Sep 30, 2011). The CBO report issued January 26, 2011 revealed an ominous state of economic affairs that called for immediate attention from policymakers as well as lawmakers for seriousness of fiscal condition requiring federal government to borrow 40 cents for every dollar it spends. The record budget defecit projected for this fiscal year is due to variety of factors ranging from last December's (December 2010) Bush-era tax cut extention to anemic affairs of economy coming out of the worst recession since the Great Depression. The estimate came in the backdrop of another potential fiscal wreck as the country's debt cap of $14.3 trillion is close to be hit. The latest CBO estimate also said that Social Security Trust fund would pay more that it receive this year and would completely exhausted by 2037.