From Marketwatch:

The U.S. is on track to post a record budget deficit in 2009, the White House is expected to announce Monday, according to reports.

The federal deficit will jump to almost $490 billion in the next fiscal year, U.S. media said, citing White House officials. Meanwhile, this year’s deficit will swell to more than $410 billion, a White House budget update to be released Monday afternoon will show.

The White House is scheduled to release its mid-session budget review at 1:45 p.m. EDT.

The continuing economic slowdown and bills for military operations in Iraq and Afghanistan are behind the record deficit.

The U.S.’s biggest budget deficit to date was $413 billion, according to figures cited by USA Today. President Bush inherited a budget surplus of $128 billion when he entered office in 2001.

An adviser to Republican presidential contender John McCain told the Washington Post that the new surge of red ink won’t have implications going forward since it’s tied to cyclical developments like the slowing economy and economic stimulus checks.