The US federal budget deficit hit an all-time high of US$164.9 billion in November, the Treasury Department reported yesterday.

The November deficit reflected the impact of a recession on tax receipts and the mounting costs of the US$700 billion financial bailout plan.

For the first two months of this budget year, which began on Oct. 1, 2008, the federal deficit totaled US$401 billion, well above the record red ink in a similar two-month period.

Analysts expect the federal budget deficit in 2009 to exceed US$1 trillion due to the economic stimulus effort and the impact of the weakening economy on government receipts.

The US federal budget was in surplus for four years from 1998 to 2001.