US official: 2008 US deficit will approach $490 billion, record driven by economy sag

A Bush administration official said Monday the next administration will inherit a record U.S. budget deficit for next year that approaches $490 billion.

The official said the deficit was being driven to record levels by the sagging economy and the stimulus payments being made to 130 million households in an effort to keep the United States from falling into a deep recession. A deficit approaching $490 billion would easily surpass the record deficit of $413 billion set in 2004.

The administration official spoke on condition of anonymity because the new estimate had not been formally released. Administration officials were scheduled to do that at a news …