October budget deficit hits record of $237.2B

The federal government began the new budget year with a record deficit of $237.2 billion, reflecting the billions of dollars the government has started to pay out to rescue the financial system.

The Treasury Department says the deficit for the first month in the new budget year was the highest monthly imbalance on record. It was more than four times larger than the October 2007 deficit of $56.8 billion.