US budget deficit to hit record $482b
Wednesday, 30 July 2008
WASHINGTON, July 29 (AFP): The US government's budget deficit is expected to balloon to a record 482 billion dollars in the next fiscal year, largely due to an emergency economic stimulus and a slowing economy, a White House report showed yesterday.
The report revealed that the office of management and budget (OMB) had trimmed its budget deficit prediction for 2008 by 21 billion dollars to 389 billion.
The OMB cited "higher inflation and more modest expectations regarding economic growth" in revising its deficit projections.
Its forecast indicates that the next US president, who will take office in January following November's presidential election, will inherit some tough spending decisions from the very first day in office.
The projected 2009 black hole in the government's accounts would represent over three per cent of the world's biggest economy which is presently valued at 14 trillion dollars.
The report revealed that the office of management and budget (OMB) had trimmed its budget deficit prediction for 2008 by 21 billion dollars to 389 billion.
The OMB cited "higher inflation and more modest expectations regarding economic growth" in revising its deficit projections.
Its forecast indicates that the next US president, who will take office in January following November's presidential election, will inherit some tough spending decisions from the very first day in office.
The projected 2009 black hole in the government's accounts would represent over three per cent of the world's biggest economy which is presently valued at 14 trillion dollars.