US budget deficit to touch USD 1.5 trillion

US budget deficit is expected to touch a new record high of USD 1.5 trillion for the current year because of high Government spending to support the economic recovery process. Government has spent around USD 2.5 trillion to buy the government bonds and treasury bills to provide sufficient liquidity in the financial market amid one of the worst financial crisis ever.

Because of this record high budget deficit, Government is planning to cut spending and set a lower budget deficit in the Congress to keep the deficit within the proper limit. If US does not reduce the budget deficit now, it may affect its no-default credit rating as well in the future.