Administration reports higher deficit under different accounting process - WMC Action News 5 - Memphis, Tennessee

Administration reports higher deficit under different accounting process

WASHINGTON (AP) - The federal budget deficit would have been 69 percent higher than the $162.8 billion reported two months ago if the government had used the same accounting methods as private companies, the Bush administration reported Monday.

The administration, releasing the "Financial Report of the United States Government" for 2007, said that the deficit under the accrual method of accounting would have totaled $275.5 billion for the fiscal year ending Sept. 30.

The report was released by the Treasury Department and the president's Office of Management and Budget. Under the accrual method of accounting, expenses are recorded when they are incurred rather than when they are paid. That raises the costs for liabilities such as pensions and health insurance.

(Copyright 2007 by The Associated Press.  All Rights Reserved.)

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