Administration Pegs Long-Term Deficits at $9 Trillion
The mid-year review from the Office of Management and Budget, released Tuesday, estimates that the 2009 deficit will be $1.58 trillion, which is $262 billion less than officials predicted earlier in the year. But the 10-year projection rose to $9 trillion, while the Congressional Budget Office estimated the 10-year deficit at $7.1 trillion.
FOXNews.com
Tuesday, August 25, 2009
The mid-year review from the Office of Management and Budget, released Tuesday, estimates that the 2009 deficit will be $1.58 trillion, which is $262 billion less than officials predicted earlier in the year. But the 10-year projection rose to $9 trillion, while the Congressional Budget Office estimated the 10-year deficit at $7.1 trillion.
FOXNews.com
Tuesday, August 25, 2009
In a reflection of how colossal Uncle Sam's credit card balance has become, two top budget offices on Tuesday gave long-term deficit projections that were $2 trillion apart.
The discrepancy underscored how difficult it is to peg the path of the U.S. economy. But with a $2 trillion margin-of-error, it also showed how unwieldy the figures have become.
The Congressional Budget Office predicted deficits over the next decade will add up to $7.1 trillion, nearly $3 trillion more than previously projected. The White House Office of Management and Budget earlier increased its 10-year-budget projection to more than $9 trillion, an increase of about $2 trillion.
However, the CBO offers budget projections using a different standard, and an apples-to-apples comparison would show that the White House numbers were actually more optimistic than the Congressional Budget Office's.
The White House blamed its gloomy forecast on the economic crisis and the practices of the previous administration.
But both offices warned that with higher deficits leading to higher national debt, in turn increasing the federal government's interest payments on that debt, the economy is in serious trouble.
"Whatever their cause, the administration is very concerned about these out-year deficits, and getting those deficits under control is a top priority of the administration," budget director Peter Orszag said.
The discrepancy underscored how difficult it is to peg the path of the U.S. economy. But with a $2 trillion margin-of-error, it also showed how unwieldy the figures have become.
The Congressional Budget Office predicted deficits over the next decade will add up to $7.1 trillion, nearly $3 trillion more than previously projected. The White House Office of Management and Budget earlier increased its 10-year-budget projection to more than $9 trillion, an increase of about $2 trillion.
However, the CBO offers budget projections using a different standard, and an apples-to-apples comparison would show that the White House numbers were actually more optimistic than the Congressional Budget Office's.
The White House blamed its gloomy forecast on the economic crisis and the practices of the previous administration.
But both offices warned that with higher deficits leading to higher national debt, in turn increasing the federal government's interest payments on that debt, the economy is in serious trouble.
"Whatever their cause, the administration is very concerned about these out-year deficits, and getting those deficits under control is a top priority of the administration," budget director Peter Orszag said.
It seems to me that all they want to do is blame others instead of taking responsability for what they are also causing. Just call it the blame game.
By: 2TheExtreme
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