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White House forecasts higher U.S. budget deficit

Posted By admin On May 11, 2009 @ 9:45 am In Money Watch | Comments Disabled

Caren Bohan and Richard Cowan
Reuters [1]
Monday, May 11, 2009

The White House on Monday pushed up its forecast for the U.S. budget deficit for this year by $89 billion, reflecting the recession, a raft of new unemployment claims and corporate bailouts.

A fresh estimate of the deficit showed it coming in at $1.84 trillion — representing a massive 12.9 percent of gross domestic product — in the current 2009 fiscal year that ends on Sept. 30. A prior White House forecast released in February projected a deficit of $1.75 trillion, or 12.3 percent of GDP.

The report may add to the political challenges facing President Barack Obama as he seeks to push through a new healthcare plan and other big domestic initiatives.

White House forecasts higher U.S. budget deficit obama 340x169 [2]

A White House official said the gloomier deficit picture reflected weaker tax receipts as the economy declined and higher costs for social safety-net programs such as unemployment insurance. Spending on the government rescues for the financial and automobile industries was also a factor in the higher deficit, said the official, who spoke to reporters on condition of anonymity.

Full article here [1]

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URLs in this post:

[1] Reuters: http://uk.reuters.com/article/marketsNewsUS/idUKN1152314620090511

[2] Image: http://www.prisonplanet.tv/subscribe.html

[3] Obama Budget Office Forecasts $1.47 Trillion Deficit This Year: http://www.prisonplanet.com/obama-budget-office-forecasts-1-47-trillion-deficit-this-year.html

[4] Obama Plans to Reduce Budget Deficit to $533 Billion by 2013: http://www.prisonplanet.com/obama-plans-to-reduce-budget-deficit-to-533-billion-by-2013.html

[5] Soaring U.S. Budget Deficit Will Mean Billions in Bond Sales: http://www.prisonplanet.com/soaring-us-budget-deficit-will-mean-billions-in-bond-sales.html

[6] US deficit to hit 1.2 trillion dollars: budget office: http://www.prisonplanet.com/us-deficit-to-hit-12-trillion-dollars-budget-office.html

[7] U.S. Federal Deficit to Worsen due to Dismal Economic Projections: http://www.prisonplanet.com/us-federal-deficit-to-worsen-due-to-dismal-economic-projections.html

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