by Calculated Risk on 2/11/2009 02:06:00 PM

From MarketWatch: U.S. Jan. budget deficit $84.0 bln vs $17.8 surplus yr-ago

The government reported a deficit of $84.0 billion in January ... [compared to] a surplus of $17.84 billion in the same month one year ago. Lower corporate taxes are dragging receipts lower, while spending has jumped ... Experts are forecasting a deficit above $1.6 trillion in the fiscal year ending Sept. 30

The CBO was projecting a deficit of $1.2 trillion before the Obama stimulus plan:

As for the startling [$1.2 trillion] estimate from the nonpartisan Congressional Budget Office, if it proves accurate, the budget deficit will be nearly two and a half times bigger than the previous record shortfall of $455 billion reached in 2008.

The estimate was far higher than most other analysts have predicted. If combined with the gigantic stimulus package of tax cuts and new spending that Mr. Obama is preparing, which could amount to nearly $800 billion over two years, the shortfall this year could hit $1.6 trillion.

And it is important to note that this is the unified budget deficit that includes the significant Social Security Insurance surplus. The General Fund deficit will be even worse.