WASHINGTON — The federal deficit for 2008 would top $1 trillion if the government had to use the same accounting methods as private companies.
And that doesn’t even account for the huge costs of the Wall Street bailout, which didn’t really start until the new budget year began Oct. 1.
The government is promising $49 trillion more than it can deliver on Social Security, Medicare and Medicaid over the next 75 years unless Congress steps in to shore up the system. Some combination of tax increases, benefit cuts or other policy changes is needed to stave off unsustainable deficits.
That was the finding Monday when the administration released a 188-page “Financial Report of the United States Government” for the 2008 budget year that ended Sept. 30.
The report found that under the accrual method of accounting used by businesses, the deficit for 2008 would have totaled $1 trillion — not the $455 billion reported in October under the cash system. Under the accrual method, expenses are recorded when they are incurred rather than when they are paid.
