US deficit surges past $1 trillion

The US federal deficit has ballooned past the $1 trillion mark for the first time and could grow to nearly $2 trillion by the end of the budget year.The Obama administration now forecasts that the deficit for the budget year will reach $1.84 trillion by end September, intensifying fears over interest rates, inflation and the strength of the dollar.

The deficit of $1.09 trillion so far this year compares to an imbalance of $285.85bn for the same period a year ago.
The deficit for the 2008 budget year, which ended last September 30, was $454.8bn, the current record in dollar terms.
The overall US debt now stands at $11.5 trillion and interest payments on the debt alone cost $452bn last year - the largest federal spending category after healthcare, social security and defence.