UPDATE 2-U.S. government posts $150 bln Nov budget gap

* U.S. posts record 26th straight monthly budget deficit

* November outlays rise to $299 billion

(Adds OMB forecast, deficit commission)

By Corbett B. Daly

WASHINGTON, Dec 10 (BestGrowthStock) – The United States recorded a
larger-than-expected $150 billion budget gap last month, the
largest shortfall for any November, Treasury Department data
showed on Friday.

Economists polled by Reuters had predicted around a $132
billion shortfall in November after a $120 billion shortfall in
November a year earlier.

The government has now posted a budget deficit for 26
straight months, the longest on record, the Treasury Department
said.

The unexpectedly large deficit comes as President Barack
Obama tries to sell a compromise made earlier in the week with
Republicans on Capitol Hill over a two-year extension of tax
cuts enacted by President George W. Bush.

U.S. Treasury bond yields spiked following the news of the
$856 billion tax cut package as investors worried the deal
would inflate further the ballooning U.S. deficit.

In November, outlays rose to $299 billion from $286 billion
in October and compared with $254 billion in November 2009, the
department said.

Receipts totaled $149 billion compared to $134 billion a
year earlier, the department said.

For the first two months of the fiscal year, which began
Oct. 1, the U.S recorded a $291 billion shortfall, compared to
a $297 billion gap in the same period a year earlier.

In August, the Congressional Budget Office forecast a
$1.066 trillion deficit for fiscal year 2011, while the
administration’s Office of Management and Budget projects a
$1.416 trillion deficit for fiscal year 2011.

Last week, a bold plan to slash the U.S. budget deficit
fell short of winning the support needed to trigger legislative
action in Congress, shifting the fiscal responsibility issue to
the White House and lawmakers.

The grim budget outlook will be a major challenge for House
Republicans, who have promised budget cuts when they officially
take control of the lower House next month.

The U.S. budget deficit for fiscal 2010, which ended Sept.
30, narrowed to $1.294 trillion from a record $1.416 trillion
in fiscal 2009.
(Editing by Padraic Cassidy)

UPDATE 2-U.S. government posts $150 bln Nov budget gap