November Deficit Hits $48 Billion, 62% Over Year Ago
The federal government ran up a $48.1-billion deficit in November, a 62% increase over a year ago, due in part to the Persian Gulf buildup and a failing economy, the Treasury Department reported Friday.
Combined with the October deficit, the imbalance for the first two months of fiscal 1991 totaled $79.5 billion, up 42.5% from the comparable period of fiscal 1990.
Economist Michael K. Evans, head of a Washington forecasting firm, said the weakening economy is resulting in declining tax revenues.
“It’s really getting to the point where the deficit is starting to balloon because both personal and corporate taxes are starting to fall off,” he said. “Receipts in November were $6 billion less than they should have been in a normal economy.”
The government collected $27.2 billion in individual income taxes last month, a 21% decline from November, 1989. Corporate income taxes were down 46%, to $1.3 billion.
At the same time, defense spending increased 18% from a year ago, to $29 billion.
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