2009 deficit hit record $1.4 trillion

As expected, the deficit for 2009 hit a record $1.4 trillion in 2009, according to the White House's official fiscal figures.

The deficit for the fiscal year that ended Sept. 30 was officially $1.417 trillion, more than triple the 2008 deficit of $455 billion.

The red ink flowed largely because of the recession's impact on tax receipts and on government attempts to salvage the economy. Money generated from taxes fell from $2.5 trillion in 2008 to $2.1 trillion in 2009. Outlays increased from nearly $3 trillion to $3.5 trillion.

Obama administration officials acknowledged that the 2009 deficit and expected deficits in coming years will be too high, but that they're committed to bringing them down.

“It was critical that we acted to bring the economy back from the brink earlier this year," said White House budget director Peter Orszag. "As we move from rescue to recovery, the president recognizes that we need to put the nation back on a fiscally sustainable path."

Treasury Secretary Timothy Geithner noted that the deficit did come in lower than the $1.8 trillion deficit projected earlier this year by the White House. The final deficit was lower "in part because we are managing to repair the financial system at a lower cost to taxpayers," Geithner said. But the smaller deficit number was also partly due to the administration and Congress's decision not to ask for more bailout money and to the decision to leave out some of the costs associated with the bailouts of mortgage companies Freddie Mac and Fannie Mae.

Republicans called on Democrats and the White House to curtail spending in future years to trillion-deficits for the next decade.

"While this past year’s deficit is not unexpected due to the government spending needed to help support the sagging economy, spending under the president’s first budget does not slow down once the recession is over," said Sen. Judd Gregg (N.H.), the top Republican on the Budget Committee. "Instead, the Administration plans for a massive growth in government that we cannot afford."

Democrats blamed the deficit on the poor economy and the Bush administration and they cautioned against pulling back efforts to boost the sagging economy.

“It would be harmful to try to balance the budget at a time when the economy has not fully recovered and so many Americans are still struggling," said House Budget Committee Chairman John Spratt (D-S.C.). "At the same time, today’s figures are the latest reminder that long-term economic stability will require that the budget be put on a sustainable path."

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