White House Says Deficit Will Be $90B Higher Than Expected
By Frank Ahrens
In his blog this morning, White House budget director Peter Orszag said that the federal budget deficit will actually be $90 billion higher than expected in February.
"OMB projects that the deficit will be about $90 billion higher in FY 2009 and also in 2010 than it did in February. The deficits in these years, now projected to be 12.9 percent and 8.5 percent of GDP, respectively, are driven in large part by the economic crisis inherited by this administration," Orsazg writes.
The phrase "inherited by this administration" appears to be boilerplate for all releases emanating from the Obama White House.
Orszag writes that the higher deficit figure is caused by what he calls "technical revisions in light of new information regarding the collection of receipts, financial stabilization efforts, and other federal programs."
What that means: Orszag is saying that today he knows more than he did in February about how much money the government will get from taxpayers this year and next and how much this recovery will cost. And the new information points to a higher deficit.
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