For the first time since 1983, the government ran a deficit during the month of April—the month revenue collections are supposed to peak. The record $20.91 billion shortfall was a result of massive government spending, but also illustrates collapsing tax revenue due to the depth of the recession gripping the nation, the Treasury said on Tuesday.

The shortfall was largely expected and in line with estimates from Wall Street economists, according to Reuters. It brought the deficit for the first seven months of fiscal 2009 to $802.29 billion. And the deficit will only continue to expand as President Barack Obama’s stimulus spending package begins to work its way into local economies.

Additionally, the giant government-owned mortgage lender Fannie Mae announced last week that it would seek another $19 billion bailout this month as job losses grow and loans made during the housing boom continue to go bad at an astounding pace. This follows a $15 billion bailout in March. Fannie Mae currently owns $145 billion worth of delinquent mortgages, more than 10 times the amount last year. Mortgage lender Freddie Mac said yesterday that it would seek $6.1 billion more in bailout funds.

Analysts predict the two government-owned lenders may eventually need another $400 billion worth of taxpayer dollars over the coming two years.

The U.S. government has not balanced its books since 1957. But this coming year, its financing needs will be the biggest ever—by far. Consequently, the bond market and dollar are under pressure. America’s standard of living—and much more—hangs in the balance.