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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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By Web Politics Editor  |  May 11, 2009; 12:23 PM ET
Categories:  Economy  
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Comments

Sorry O'Bomba-Nation.

YOU, and YOUR Admin decided to spend like Drunken Sailors on YOUR Socialist Agendas!

As far as the economy, it Nose-Dived as soon as it became apparent O'Bomba was going to win!

Investors collectively screamed "Run Away! RUNNN AWAAAAAAYYYYYYYYYY!!!!"

And they have NOT COME BACK!

Posted by: SAINT---The | May 12, 2009 4:13 AM | Report abuse

This is not even half of it. It will get worse because the budget estimates by the Administration in future years are based on unrealistic economic growth figures.

At some point "We inherited the problem from Bush" will sound hollow particularly since Bush deficits were two to three percent of GDP. The Administration's estimate that the deficit will be reduced from 12.9 percent to 8.5 of GDP in FY2010 is wildly optimistic.

Posted by: danielhancock | May 12, 2009 1:11 AM | Report abuse

How about the last White House?

Posted by: JRM2 | May 11, 2009 1:50 PM | Report abuse

It seems as if the phrase "The Buck Stops Here" has never emanated from this White House.

Posted by: JakeD | May 11, 2009 12:27 PM | Report abuse

The comments to this entry are closed.

 
 
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