The feds reported a budget deficit of a staggering $125 billion last month, more than twice what was registered this time last year.
“The budget has become a key point of political contention in Washington during this election year. Economists worry another budget impasse like the one that cost the United States its AAA credit rating last year could be in store at the end of 2012, potentially derailing a fragile economic recovery,” writes Pedro Nicolaci da Costa for Reuters.
The deficit grew in May despite the fact that April enjoyed a "rare surplus" due to high tax revenues.
“So far this fiscal year, the budget deficit stands at $844.5 billion, narrower than at the same time a year ago [emphasis added],” writes da Costa.
Under the fed's "specialized" accounting system (remember, they don't keep books like a regular business), fiscal year 2012 begins in October. When FY2011 came to an end in September 30, the budget deficit was approximately $1.296 trillion (but only under their "specialized" accounting rules).