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Obama Budget Office Forecasts $1.47 Trillion Deficit This Year

By Roger Runningen

July 24, 2010

A mid-year budget review by the Obama administration forecasts the deficit will be $1.47 trillion this year and $1.42 trillion next year as the U.S. struggles to recover from the recession.

This year’s budget shortfall is $84 billion less than President Barack Obama’s budget office projected in February because of lower than projected spending for unemployment and some government programs. Still, the total would be a record and represent 10 percent of gross domestic product.

The administration projects the U.S. economy will grow 3.2 percent this year, compared with 2.7 percent forecast in February. Growth is projected at 3.6 percent next year and 4.2 percent in 2012. The review says the unemployment rate will average 9.7 percent this year, 9 percent next year and won’t fall below 6 percent until 2015.

Full article here [1]