August 25th, 2009
10:18 AM ET
5 years ago

White House: $9 trillion in deficits

NEW YORK (CNNMoney.com) – The White House now expects the 10-year budget deficit to reach $9.05 trillion, roughly $2 trillion more than it estimated earlier in the year, according to a report released Tuesday by the Office of Management and Budget.

Budget office director Peter Orszag pointed to a number of measures put in place to stem the pain of the economic downturn.

"As a result of a deeper-than-expected recession, certain spending programs (such as unemployment insurance and food stamps) are projected to automatically increase and revenues are projected to automatically decline, compared to our previous projection," Orszag said in a statement.

A 10-year deficit of $9 trillion means the debt held by the public - the accumulation of all annual deficits over the decades - would reach 82% of gross domestic product. That's double the 41% recorded in 2008.

The administration's new deficit estimate brings it more in line with an earlier deficit estimate from the Congressional Budget Office, which is Congress' official scorekeeper. The CBO had estimated that the 10-year deficit would reach $9.14 trillion, or 5.2% of gross domestic product.

Later Tuesday morning the CBO also will release its updated budget and economic outlook for fiscal years 2009 to 2019.


Filed under: Deficit • Obama administration
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