- Jan 16, 2003
- Reaction score
The White House is projecting the current fiscal year will end with a record $1.6 trillion deficit.
As President Obama prepares to unveil his $3.8 trillion budget for fiscal year 2011, which begins Oct. 1, the White House is projecting the current fiscal year will end with a $1.6 trillion deficit, congressional sources confirmed to Fox News.
Next year's budget will have a nearly $1.3 trillion debt, according to those sources, dropping to just over half that -- $700 billion in fiscal year 2013 -- before jumping back up to $1 trillion in 2020, the furthest out that budgeters will predict.
A $1.6 trillion deficit would represent more than 10 percent of the gross domestic product, but the White House says over the next 10 years, the average deficit will represent only 4.5 percent of GDP annually. Last year's deficit was $1.42 trillion.
FOXNews.com - Obama Offers Budget With Deficits as Far as Number-Crunchers Can SeeThe numbers come as the president and congressional Democrats have pivoted from preparing a $1 trillion health care proposal to focusing on jobs and the deficit. Speaking at the State of the Union last week, Obama told a joint session of Congress that he wants to freeze spending -- beginning in 2012 -- on discretionary spending except the military, veterans and homeland security. The president said that would save $250 billion over 10 years.
Penny wise and pound foolish?