- The Washington Times - Friday, October 15, 2010

The federal government ended fiscal year 2010 $1.294 trillion in the red, the Treasury Department said Friday — an improvement from last year’s largest-ever annual deficit of $1.416 trillion, but still the second-largest hole in history.

With the expiration of major Wall Street bailout programs, spending dropped compared to 2009, while government revenue was up, including a major increase in corporate tax receipts.

“Thanks in large part to the tough decisions this administration made over the past two years, the economy is recovering and we’re spurring economic growth and job creation,” said Jeffrey Zients, acting director of the White House Office of Management and Budget.

But Rep. Tom Price, chairman of the Republican Study Committee, questioned the White House’s celebration of what all sides agree are still dangerously high numbers.

“If not for the reckless spending of last year, this would be by far the largest annual deficit in history,” Mr. Price said.

Across all agencies, the government spent $3.456 trillion in 2010, and took in just $2.162 trillion in revenue.

The fiscal year ended Sept. 30.

In a preliminary analysis released last week, the Congressional Budget Office said subtracting out the bailouts for Wall Street and Fannie Mae and Freddie Mac, government spending grew 9 percent from 2009 to 2010.

A large part of that jump was increased interest on the national debt, which stood at $13.607 trillion as of Thursday.

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