In the fantasy-land that is US government financing, a non-partisan economic agency has predicted the US deficit could reach USD$10 trillion over the next ten years. The Congressional Budget Office projections are hypothetical and based on programs that the White House and Congressional Republicans support but in many respects are conservative. If discretionary spending continues to rise at its current rate, the deficit could easily increase by another USD$2.8 trillion.
WASHINGTON, Aug. 26  The nonpartisan Congressional Budget Office said today that federal budget deficits could total $5 trillion over the next 10 years if discretionary spending grows in line with the economy and if Congress enacts programs strongly supported by President Bush.
The accumulated shortfall would be far higher than what the White House suggested last month, when it predicted that the budget deficit would hit $475 billion next year and decline significantly after that.
Today’s estimate put the 2004 deficit at $480 billion, making the shortfall equal to about 4.2 percent of the nation’s gross domestic product. That is proportionately lower than some deficits reached in the 1980’s.
More at http://www.nytimes.com/2003/08/26/business/26CND-BUDGET.html (free registration required).
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