(CNSNews.com) - Weaknesses in the economy and financial markets--and the government's response to them--have helped boost federal budget deficits, which reached a record level in fiscal year 2009, the General Accountability Office reported on Thursday.
The situation probably won't improve any time soon: "While a lot of attention has been given to the recent fiscal deterioration, the federal government faces even larger fiscal challenges that will persist long after the return of financial stability and economic growth," the report says.
The GAO has been publishing long-term fiscal simulations since 1992, in response to a bipartisan request from Congress. According to the GAO, lawmakers asked for the projections because they were concerned about the long-term effects of fiscal policy...