U.S. February budget deficit is largest on record

March 12, 2011 The U.S. reported  the government posted  a monthly   of 222.5 billion in February, the largest monthly deficit ever recorded. The February deficit, announced on Thursday, outstripped the February of $110 billion.

The report comes at a time when the and both national political parties  are under extreme pressure to reduce the deficit as well as the total. There is no agreement on how to reduce spending and increase government revenue, and both and  measures have been voted down.

Factors contributing to the February 2011 deficit compared to that of February 2010 included a 69% reduction in, and an increase of 29% in   payments due on the U.S. debt. The government also spent more than in the previous February on, including an increase of 11% on. Government measures, such as an extension of, cuts in the  and some  business tax reductions also contributed to the deficit.

The White House has predicted that the U.S. budget deficit will reach $1.6 trillion this year and then fall to $1.1 trillion in 2012. ,, has warned  that by April 15 of this year, the U.S. is likely to reach its $14.3 trillion borrowing limit.