
U.S. heading for $400-billion deficit CBC \|\| January 16, 2006 The U.S. government is expected to run a deficit of more than $400 billion in the fiscal year ending in September, a White House official said Thursday. That's up from $318.5 billion in 2005 but below the record $413 billion in 2004. The cost of dealing with Hurricane Katrina was a big factor in pushing up the figure, said Joel Kaplan, deputy director of the White House Office of Management and Budget. Other observers have cited the Iraq war and tax cuts as contributing to the deficit. The $400-billion estimate represents an increase from a $361 billion forecast in July. Kaplan said the deficit will be halved by 2009 if the United States exercises restraint and continues to follow policies advocated by President George W. Bush. Article Posted at www.KnowledgeDrivenRevolution.com The deficit in the first quarter, which ended Dec. 31, was $119.31 billion, slightly over the $118.05 billion in fiscal 2005. In February, Bush will present a budget for the 2007 fiscal year, starting in October, that is expected to try to cut spending. Alan Greenspan, chairman of the U.S. Federal Reserve, expressed concerns in December about the government's failure to deal with its budget deficit. He had said there could be severe consequences for the U.S. economy unless policy-makers attack a deficit that is projected to soar as baby boomers retire. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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U.S. heading for $400-billion deficit

CBC || January 16, 2006

The U.S. government is expected to run a deficit of more than $400 billion in the fiscal year ending in September, a White House official said Thursday.

That's up from $318.5 billion in 2005 but below the record $413 billion in 2004.

The cost of dealing with Hurricane Katrina was a big factor in pushing up the figure, said Joel Kaplan, deputy director of the White House Office of Management and Budget.

Other observers have cited the Iraq war and tax cuts as contributing to the deficit.

The $400-billion estimate represents an increase from a $361 billion forecast in July.

Kaplan said the deficit will be halved by 2009 if the United States exercises restraint and continues to follow policies advocated by President George W. Bush.

Article Posted at www.KnowledgeDrivenRevolution.com

The deficit in the first quarter, which ended Dec. 31, was $119.31 billion, slightly over the $118.05 billion in fiscal 2005.

In February, Bush will present a budget for the 2007 fiscal year, starting in October, that is expected to try to cut spending.

Alan Greenspan, chairman of the U.S. Federal Reserve, expressed concerns in December about the government's failure to deal with its budget deficit.

He had said there could be severe consequences for the U.S. economy unless policy-makers attack a deficit that is projected to soar as baby boomers retire.

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