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WASHINGTON — The federal shortage. for 2008 would top $1 trillion if the state had to use the same accounting methods as private companies.

And that doesn’t steady account for the huge costs of the Wall Street bailout, which didn’t really start until the new budget year began on Oct. 1.

The government is promising $49 trillion to a greater degree than it can deliver on Social Security, Medicare and Medicaid over the nearest 75 years unless Congress steps in to shore up the system. Some combination of tax increases, benefit cuts or other policy changes is needed to stave opposite unsustainable deficits.

That was the finding Monday when the administration released a 188-page “Financial Report of the United States Government” for the 2008 stock year that ended on Sept. 30.

The report, released by the Treasury Department and the White House budget office, found that in subordination to the accrual rule of accounting used by businesses, the shortage. on advantage. of 2008 would have totaled $1 trillion — not the $455 billion reported in October in a less degree than the cash system of accounting.

Under the accrual method, expenses are recorded when they are incurred rather than whereas they are paid. That tends to call up costs for obligations such as pensions and hale condition insurance. The big jump in the 2008 packet year was largely to be ascribed to changed calculations for the payment of veterans benefits.

Even under regular cash accounting, the deficit is expected to top a staggering $1 trillion since the ongoing 2009 fiscal year, provident the costs of the Wall Street bailout, weaker levy revenues from the deepening recession and the costs of President-elect Obama’s upcoming economic-recovery measure.

The report doesn’confidentially factor in the enormous potential liabilities incurred by means of the Federal Reserve System over the past few months like it has tried to stabilize the fiscal arrangement by taking steps such as guaranteeing $306 billion cost of Citigroup troubled estate. Fed transactions aren’t reported on the government’s books.

Despite the turmoil caused by the financial crisis, the longer-term liabilities facing the government are even more staggering.

Virtually each budget expert warns that the long-term costs of founded on retirement programs like Social Security and Medicare are going to swamp the budget as more and more baby boomers retire. The long-term shortfall for Medicare grew by $3.1 trillion over the past year.

“We must not forget the long-term needs that pose a significant threat to our economy’s fiscal sustainability,” said Treasury Secretary Henry Paulson.

President Bush hands President-elect Obama a government in bad financial shape, but Obama’s unlikely to tackle the deficit until an economic recovery begins.