Federal Deficit Hits Record High of $1.38 Trillion in August

ABC News Matthew Jaffe reports: The federal deficit rose by $111.4 billion in August to a record high of $1.378 trillion with one month still to go in the current fiscal year, the Treasury Department announced Friday.

The government in August took in $145 billion in receipts, but $256 billion in outlays led to an overall monthly deficit of $111 billion. That number is better than anticipated -- most expectations were that the government had added $162 billion to its tab last month.

The record deficit stems from increased government spending to stop the recession and financial crisis combined with lower government tax revenues.

In late August, the Obama administration projected that the deficit for the full budget year will eventually hit $1.58 trillion.

“The deficits we’re dealing with right now are truly staggering amounts of money,” former Bush administration official Tony Fratto told ABC News. “The administration is long past due for coming forward with a credible plan to bring down deficits in the future.”

-- Matthew Jaffe

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