Government deficit $485 billion 3 months into budget year

WASHINGTON — The federal government already has run up a record deficit of $485.2 billion in just the first three months of the current budget year. And economists say the imbalance for the full year could easily top $1 trillion.

The Treasury Department reported Tuesday that the deficit for December totaled $83.6 billion, a sharp deterioration from a year ago, when the government managed a surplus of $48.3 billion.

All the red ink comes from the massive spending out of the financial rescue program — $247 billion out of $700 billion spent so far — and a prolonged recession that has depressed tax revenues.

The overall deficit from October through December is the highest on record for a first quarter and surpasses the mark for a full budget year of $454.8 billion set last year.

Slightly more encouraging was a Commerce Department report that the trade deficit declined sharply to $40.4 billion in November, the smallest imbalance in five years, as the recession slashed demand for oil and imports from China.