Federal spending soars 25% before bailout

The government's spending commitments exploded by 25 percent in 2008, putting taxpayers more than $1 trillion in the hole even before the astronomical costs of the economic bailout were taken into account, according to an annual report released Monday by the White House. A joint report by the White House budget office and Treasury Department said that much of the increase in obligations came from an unexpected jump in veterans benefits liabilities, while revenues remained mostly flat because of the recession that began a year ago. Jim Nussle, director of the White House Office of Management and Budget, called the report "sobering." The report showed that U.S. debts and liabilities are close to passing the value of the U.S. population's net worth, said Peter G. Peterson Foundation, a nonprofit organization devoted to promoting fiscal responsibility. "The value of this report is that it shows the long-term cost of expensive commitments we are making today," said Brian Riedl, a budget analyst for the Heritage Foundation. Read more at the Washington Times...