US deficit forecast to hit $1.8 trillion this year
New CBO estimate sees budget deficit for 2009 hitting $1.8 trillion, congressional aides say
Andrew Taylor, Associated Press Writer
Friday March 20, 2009, 11:42 am EDT
Buzz up! Print WASHINGTON (AP) -- The federal budget deficit for the current year will top $1.8 trillion under the latest estimates produced by congressional economists, say Capitol Hill aides briefed on the figures.
The Congressional Budget Office's estimate of President Barack Obama's budget for next year show a worsening picture for 2010 as well, with a deficit of almost $1.4 trillion expected under administration policies. Obama had predicted about $200 billion less.
The aides spoke on condition of anonymity in advance of public release of the figures later Friday.
The latest figures, fueled by the $700 billion Wall Street bailout and diving tax revenues stemming from the worsening recession, would shatter the previous record for a federal shortfall of $459 billion, set just last year.
Democrats insist the huge deficit won't crimp Obama's ambitious agenda. The White House reminds daily that Obama inherited a terrible fiscal situation.
Democrats in Congress are readying Obama's budget for preliminary votes next week, and they promise to cut the deficit in half within five years. Still, long-term deficits equal to 3 percent of the size of the economy have many lawmakers uneasy.
Democrats are likely to curb somewhat Obama's request for a 9 percent increase in non-defense agency budgets.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
WASHINGTON (AP) -- Capitol Hill aides say the latest deficit figures produced by congressional economists show the federal budget deficit will exceed $1.8 trillion this year.
The flood of red ink gets only slightly better in 2010 with a deficit of almost $1.4 trillion under the Congressional Budget Office's latest figures, due out officially this afternoon. The numbers come from aides who spoke on condition of anonymity before the official release.
Democrats in Congress are readying President Barack Obama's budget for preliminary votes next week. Obama's figures are in line with CBO's for the current year but slightly lower for 2010.
The weakening economy is responsible for the worsening deficit picture, but Democrats insist it won't crimp Obama's agenda.
AI
