S
Sid9
Guest
(jr's war is "off budget" and not included in these numbers)
January 23, 2008
U.S. Deficit Estimated at $250 Billion
By THE ASSOCIATED PRESS
Filed at 9:54 a.m. ET
WASHINGTON (AP) -- The deficit for the current budget year will jump to
about $250 billion, the Congressional Budget Office estimated Wednesday,
citing the weakening economy. And that figure does not reflect at least $100
billion in additional red ink from an upcoming deficit-financed economic
stimulus measure.
The nonpartisan CBO says that once the cost of wars is added to its
''baseline'' deficit estimate of $219 billion, the deficit would be about
$250 billion.
''After three years of declining budget deficits, a slowing economy this
year will contribute to an increase in the deficit,'' the CBO report said.
Such a figure greatly exceeds the $163 billion in red ink registered last
year. Including likely but still unapproved outlays for the wars in Iraq and
Afghanistan, the deficit for 2008 would total about $250 billion, CBO said.
Senate Budget Committee Chairman Kent Conrad, D-N.D., said the 2008 deficit
would reach more than $350 billion once the costs of an upcoming economic
stimulus measure under negotiation between the Bush administration and
Congress are factored in.
The CBO crunches economic and budget data for lawmakers.
Unlike an increasing number of economists, CBO does not forecast a recession
this year. It instead forecasts a growth rate of 1.7 percent, down from 2.2
percent real growth in the gross domestic product (GDP) last year.
''Although recent data suggest that the probability of a recession in 2008
has increased, CBO does not expect the slowdown in economic growth to be
large enough to register as a recession,'' CBO said. The CBO economic
forecast was completed last month, before a recent spike in unemployment and
the release of disappointing holiday retail sales figures.
''A number of ominous economic signs have emerged since CBO finalized last
month the forecast underlying today's report,'' said House Budget Committee
Chairman John Spratt Jr., D-S.C. ''Today's new economic forecast thus adds
to the growing evidence that the economy has weakened, and that policymakers
in Washington must take action.''
CBO Director Peter Orszag was scheduled to testify before the House Budget
Committee.
Officially, CBO predicts the 2008 deficit at $219 billion, but that figure
fails to account for at least an additional $30 billion in war costs and the
likely infusion of deficit-financed economic stimulus measures such as
income tax rebates, business tax breaks and help for the unemployed now
under discussion on Capitol Hill and at the White House.
The deficit seems to be an afterthought as lawmakers race toward agreement
with President Bush on a plan to pump perhaps $150 billion worth of deficit
spending into the economy. The bulk of the plan would come as tax cuts,
though Democrats are pressing for additional help for the unemployed and
people on food stamps. Constituency groups in both political parties are
pressing for even more, such as Democratic-sought aid to cash-strapped
states and people with high heating bills.
Most of any economic stimulus bill would be released before the Oct. 1 start
of the 2009 budget year, with any benefits to the economy -- and therefore
federal revenues -- lagging behind.
The White House is set to release its 2009 budget on Feb. 4, and Bush has
promised a plan that would erase the deficit by 2012 if his policies are
followed.
The 2006 deficit was $248 billion and had closed from a high of $413 billion
registered in 2004.
January 23, 2008
U.S. Deficit Estimated at $250 Billion
By THE ASSOCIATED PRESS
Filed at 9:54 a.m. ET
WASHINGTON (AP) -- The deficit for the current budget year will jump to
about $250 billion, the Congressional Budget Office estimated Wednesday,
citing the weakening economy. And that figure does not reflect at least $100
billion in additional red ink from an upcoming deficit-financed economic
stimulus measure.
The nonpartisan CBO says that once the cost of wars is added to its
''baseline'' deficit estimate of $219 billion, the deficit would be about
$250 billion.
''After three years of declining budget deficits, a slowing economy this
year will contribute to an increase in the deficit,'' the CBO report said.
Such a figure greatly exceeds the $163 billion in red ink registered last
year. Including likely but still unapproved outlays for the wars in Iraq and
Afghanistan, the deficit for 2008 would total about $250 billion, CBO said.
Senate Budget Committee Chairman Kent Conrad, D-N.D., said the 2008 deficit
would reach more than $350 billion once the costs of an upcoming economic
stimulus measure under negotiation between the Bush administration and
Congress are factored in.
The CBO crunches economic and budget data for lawmakers.
Unlike an increasing number of economists, CBO does not forecast a recession
this year. It instead forecasts a growth rate of 1.7 percent, down from 2.2
percent real growth in the gross domestic product (GDP) last year.
''Although recent data suggest that the probability of a recession in 2008
has increased, CBO does not expect the slowdown in economic growth to be
large enough to register as a recession,'' CBO said. The CBO economic
forecast was completed last month, before a recent spike in unemployment and
the release of disappointing holiday retail sales figures.
''A number of ominous economic signs have emerged since CBO finalized last
month the forecast underlying today's report,'' said House Budget Committee
Chairman John Spratt Jr., D-S.C. ''Today's new economic forecast thus adds
to the growing evidence that the economy has weakened, and that policymakers
in Washington must take action.''
CBO Director Peter Orszag was scheduled to testify before the House Budget
Committee.
Officially, CBO predicts the 2008 deficit at $219 billion, but that figure
fails to account for at least an additional $30 billion in war costs and the
likely infusion of deficit-financed economic stimulus measures such as
income tax rebates, business tax breaks and help for the unemployed now
under discussion on Capitol Hill and at the White House.
The deficit seems to be an afterthought as lawmakers race toward agreement
with President Bush on a plan to pump perhaps $150 billion worth of deficit
spending into the economy. The bulk of the plan would come as tax cuts,
though Democrats are pressing for additional help for the unemployed and
people on food stamps. Constituency groups in both political parties are
pressing for even more, such as Democratic-sought aid to cash-strapped
states and people with high heating bills.
Most of any economic stimulus bill would be released before the Oct. 1 start
of the 2009 budget year, with any benefits to the economy -- and therefore
federal revenues -- lagging behind.
The White House is set to release its 2009 budget on Feb. 4, and Bush has
promised a plan that would erase the deficit by 2012 if his policies are
followed.
The 2006 deficit was $248 billion and had closed from a high of $413 billion
registered in 2004.
