More recently, however, a major source of financial strains has been uncertainty about developments in Europe. These strains are most problematic for the Europeans, of course, but through global trade and financial linkages, the effects of the European situation on the U.S. economy are significant as well.
Tax revenue recorded on a cash basis in the state budget fell by 3.3 per cent in the first six months of the year compared with the same period of 2008, mainly owing to the steep decline in receipts from VAT (-11.3 per cent) and other business taxes (-9.2 per cent).