The Congressional Budget Office (CBO) released their Monthly Budget Review on Friday last week, showing lots of red ink for the federal government in FY 2008.

CBO estimates that the federal budget deficit was $486 billion in the first 11 months of the fiscal year, $212 billion more than the shortfall recorded over the same period last year. CBO anticipates that the government will realize a surplus in September, stemming from quarterly payments of estimated income taxes. The result will be a deficit in the vicinity of $400 billion for the fiscal year.

CBO will release a new estimate of the 2008 deficit and updated baseline projections for fiscal years 2009—2018 on September 9 and we'll be sure to post that release on the BudgetBlog.

CBO: Monthly Budget Review