Who's axing?

13 May 2010 By James Pethokoukis

The shortfall in April was double what economists expected. The bad surprises won’t end there, at least if you go by Uncle Sam’s forecasts of future deficits, which are traditionally rosetinted. Expenses need cutting with an ax, not a scalpel and sooner rather than later.

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The United States posted an $82.7 billion deficit in April, nearly four times the $20.9 billion shortfall registered in April 2009 and the largest on record for that month, the Treasury Department said on May 13.

The deficit was more than twice the $40 billion that Wall Street economists surveyed by Reuters had forecast and was striking since April marks the filing deadline for individual income taxes that are the main source of government revenue. There has been a surplus during April in 43 out of the past 56 years. The United States has now posted 19 consecutive monthly budget deficits, the longest string of shortfalls on record.

For the first seven months of fiscal year 2010, which ends on September 30, the cumulative budget deficit totals $799.7 billion, down slightly from $802.3 billion in the comparable period a year earlier. The U.S. fullyear deficit this year is projected at $1.5 trillion on top of a $1.4 trillion shortfall last year.

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