The Congressional Budget Office’s announcement today that the federal government will run a $407 billion deficit this year caused finger-pointing by Democrats and Republicans.

Republicans targeted the Democrats for what they said was excessive spending and regularly bypassing pay-as-you-go budget rules.

Senate Budget ranking member Judd Gregg (R-N.H.) said Democrats have passed legislation that piles on to the deficit and are likely to do the same if Democratic presidential nominee Sen. Barack Obama (Ill.) is elected.

“This is a do debt, do deficit and do-nothing Congress. … This is a failure. These numbers reflect a failure,” Gregg said.

Budget Chairman Kent Conrad (D-N.D.) said the deficit spending began under the GOP majority. Calling Republicans “architects of this economic fiasco,” he argued that the consequences of the GOP-controlled Congress are just becoming clear.

“They are the ones that dug this hole and kept digging,” Conrad said.