August 24th, 2009
06:50 PM ET
5 years ago

Federal deficits: $9 trillion and counting

NEW YORK (CNNMoney.com) - In just over a month, the federal government's fiscal year will draw to a close, leaving in its wake one of the biggest annual deficits in U.S. history - and a forecast of more record debt to come.

Just how much more will be the question on Tuesday.

The Congressional Budget Office and the White House Office of Management and Budget are set to release separate updates of their 10-year deficit estimates, along with updates on their economic outlooks.

The agencies' previous estimates - based on the president's proposed 2010 budget - were about $2 trillion apart.

The CBO, which serves as Congress' official scorekeeper, had the higher estimate: $9.14 trillion over 10 years or 5.2% of gross domestic product.

By comparison, the Obama administration's budget office forecast a $7.11 trillion deficit or 4% of GDP.

The White House's economic estimates were seen by many as too optimistic. For instance, the administration estimated that unemployment would hit a peak of 8.1% this year. Actual unemployment numbers have already surpassed that level - hitting 9.4% in July. And many economists expect the number to reach 10% before too long.

Last week, White House officials said their new 10-year deficit forecast will be in the neighborhood of $9 trillion, in part because Uncle Sam is pulling down less tax revenue than expected. That would bring it more in line with the CBO's previous forecast.

Full story on CNNMoney.com

soundoff (One Response)
  1. randy

    No change or hope here, just the destrution of the greatest county known to man.

    August 24, 2009 09:19 pm at 9:19 pm |