Housing collapse and financial turmoil leads to steep rise in estimated budget shortfall for '09, congressional office says.
NEW YORK (CNNMoney.com) -- The U.S. budget deficit in 2009 is projected to spike to a record
$1.2 trillion, or 8.3% of gross domestic product, the Congressional Budget Office said Wednesday.
The dramatic jump compares to a $455 billion deficit in fiscal year 2008 and $161 billion in 2007. The
estimate does not account for the massive spending and tax cuts proposed in President-elect Barack Obama's economic rescue plan. 
The federal government has tried to combat the crisis by so far
committing $7.2 trillion in investments and loans primarily to financial institutions.
