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Projected Budget Deficit of 1.75 Trillion

Discussion in 'U.S. Politics' started by Stalin, Feb 27, 2009.

  1. Stalin

    Stalin Active Member

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    "...Under the budget outline issued by the Obama administration Thursday, the US government will run a $1.75 trillion deficit during the current fiscal year, which ends September 30, nearly four times the largest previous federal deficit. This gargantuan sum includes the $700 billion allocated for the Wall Street bailout, more than half of it already spent, as well as part of the $787 billion in spending authorized by the economic stimulus bill passed by Congress and signed into law by Obama last week.

    For fiscal year 2009, nearly half over, the federal government will borrow almost half of all the dollars it spends: $1.75 trillion out of a record expenditure of $3.94 trillion. The White House projects that spending in fiscal year 2010 will be only slightly lower, $3.55 trillion, with the deficit falling to a still staggering $1.17 trillion.

    According to the White House estimates, the combined deficit for the four years 2009-2012 comes to $4.42 trillion. The net debt of the federal government, what it owes to individuals, businesses and foreign countries, will double, rising from $5.3 trillion to $11 trillion over the same period.

    There is no discussion in the budget outline of where these vast sums will come from. Given the worldwide financial crisis, US borrowing on such a scale means that the American government will be competing with—and effectively denying funds for—the governments of other, weaker capitalist powers, many of which have already had to resort to borrowing from the International Monetary Fund to avoid financial collapse.

    The ten-year budget projection, covering the years 2010 to 2019, shows the annual deficit declining to $533 billion in fiscal 2013—still larger than any previous year before the crash of 2008—and then beginning to rise again. By 2019, the US national debt is estimated at $13.8 trillion, a sum equivalent to the entire US Gross Domestic Product last year..."

    http://www.wsws.org/articles/2009/feb2009/budg-f27.shtml

    Comrade Stalin
     
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