Reply #48: White House Forecasts $427 Bln Budget Deficit, Bush Aide Says

[54anickel]

http://quote.bloomberg.com/apps/news?pid=10000006&sid=a3t_C5_kdAhI&refer=home

Jan. 25 (Bloomberg) -- The Bush administration expects a $427 billion federal budget deficit this fiscal year, bigger than the shortfall estimated by the Congressional Budget Office, an administration official told reporters today.

The deficit estimate, to be included in President George W. Bush's Feb. 7 budget request to Congress, was released almost two weeks early to head off pressure to increase spending, another administration aide said. Both officials spoke on condition of anonymity.

Earlier today, the CBO said this year's budget deficit would reach $368 billion after a record shortfall of $412 billion. Over the next 10 years, the deficit will total $855 billion, the nonpartisan CBO said.

The CBO estimate doesn't include spending for the war on Iraq this year. Nor over the long run does it include the costs for Bush's proposal to allow younger workers to invest part of their Social Security taxes in private accounts. Bush's plan may increase the deficit by $1 trillion to $2 trillion over a decade, according to the CBO.

The administration's expected budget deficit would be 3.5 percent of gross domestic product, the aide told today's briefing.

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So, I guess he's again tossing the CBO aside, this time because bigger numbers will promote the "crisis" mood. "Must make drastic cuts NOW!" :eyes: