Saturday, March 21, 2009
The US budget deficit will reach a record 1.845 trillion dollars in fiscal 2009 that ends in September, equivalent to 13.1 percent of economic output, the budget arm of Congress forecast Friday.
The Congressional Budget Office’s (CBO) latest estimate was far steeper than its prior forecast in January of a deficit of 1.2 trillion dollars.
The new projections were based on the budget plan presented by President Barack Obama’s administration to Congress in February.
The budget deficit for the 2008 fiscal year was a record 459 billion dollars, or 3.2 percent of gross domestic product.
The CBO estimated that for the current fiscal year, which began last October 1, spending would soar 34 percent from the past year, to 4.004 trillion dollars, and revenues would plunge 15 percent, to 2.159 billion.
The deficit would remain high in the 2010 fiscal year, at 1.379 billion dollars, before falling below the trillion-dollar mark in 2011, to 970 billion dollars.
- A d v e r t i s e m e n t
The CBO is an independent body of Congress charged with providing lawmakers with economic analysis to aid in budgeting.