WASHINGTON (CNN) -- The White House on Monday predicted a record deficit of $490 billion for the 2009 budget year, a senior government official told CNN.


The White House blames a faltering economy and the stimulus package for the increased budget deficit.

The deficit would amount to roughly 3.5 percent of the nation's $14 trillion economy.

The official pointed to a faltering economy and the bipartisan $170 billion stimulus package that passed earlier this year for the record deficit.

The fiscal year begins October 1, 2008.

The federal deficit is the difference between what the government spends and what it takes in from taxes and other revenue sources. The government must borrow money to make up the difference.

The official spoke on the condition of anonymity, citing lack of authorization to speak publicly ahead of an official briefing later Monday by Office of Management and Budget Director Jim Nussle.

White House spokeswoman Dana Perino said the stimulus package was necessary, even if it increased the deficit.

"We do think the plan was the right one, and it will have an effect," Perino said. "And the best way to help reduce the deficit is to make sure you are keeping a lock on spending, but also that you can also try to help to build the economy. So we hope this will help us pull out of the economic downturn over the next few months because of the stimulus package.

"I remember that back when we were discussing the stimulus package, both parties recognized that the deficit would increase, and that would be the price that we pay in order to help improve the economy," she said.

President Bush inherited a budget surplus of $128 billion when he took office in 2001 but has since posted a budget deficit every year.

The Bush administration has spent heavily on the wars in Iraq and Afghanistan, and faces a large budget shortfall in tax revenue because of Bush's tax cuts and a souring economy.

(CNN)

But ya know, they had to do it to repair the damage caused by Bill Clinton's balanced budget...




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