U.S. deficit still increasing

WASHINGTON – The federal budget deficit hit an all-time high for the month of December, and the red ink for the first three months of the current budget year is rising at a more rapid pace than last year’s record clip.

The massive tide of red ink, reflecting the continued fallout from a deep recession and a severe financial crisis, highlights the challenge facing President Barack Obama as he pledges to get control of runaway deficits.

The Treasury Department said Wednesday that the deficit last month totaled $91.85 billion, the largest December deficit on record.

For the first three months of the current budget year, which began on Oct. 1, the deficit totaled $388.51 billion, 16.8 percent higher than the $332.49 billion imbalance recorded during the same period a year ago.

Last year’s deficit surged to $1.42 trillion, more than three times the record of the previous year.