Deficit likely to soar to US$1.5t in 2011
Source: Agencies |
January 28, 2011, Friday
|
Print Edition
Print Edition
FAR from slowing, the United States government's deficit spending will surge to a record US$1.5 trillion this year, congressional budget experts estimated, blaming the slow economic recovery and last month's extension of Bush-era tax cuts.
Daunting for President Barack Obama, nationwide unemployment rate of 8.2 percent is estimated on Election Day in 2012.
The budget estimates will add fuel to the already-raging debate over spending and looming legislation that would allow the government to borrow more money as the national debt nears the US$14.3 trillion cap set by law. Republicans controlling the House say there's no way they'll raise the limit without significant budget cuts, starting with a government funding bill that will advance next month.
The chilling figures came the day after Obama called in his State of the Union address for a five-year freeze on optional spending in domestic agency budgets passed by Congress each year.
Wednesday's Congressional Budget Office estimates indicate the government will have to borrow 40 cents for every dollar it spends this fiscal year, which ends September 30. Tax revenues are set to drop to their lowest levels since 1950, when measured against the size of the economy.
The report, full of nasty news, also says that after decades of surpluses for the federal Social Security pension program, its vast costs are no longer covered by payroll taxes.
Democrats and Republicans agree that stern anti-deficit steps are needed, but neither Obama nor his resurgent rivals in Congress are - so far - willing to put on the table cuts to popular benefit programs such as farm subsidies and entitlement programs for the elderly like Social Security and Medicare. The need to pass legislation to fund the government and prevent a first-ever default on US debt obligations seems sure to drive the two sides into negotiations.
Daunting for President Barack Obama, nationwide unemployment rate of 8.2 percent is estimated on Election Day in 2012.
The budget estimates will add fuel to the already-raging debate over spending and looming legislation that would allow the government to borrow more money as the national debt nears the US$14.3 trillion cap set by law. Republicans controlling the House say there's no way they'll raise the limit without significant budget cuts, starting with a government funding bill that will advance next month.
The chilling figures came the day after Obama called in his State of the Union address for a five-year freeze on optional spending in domestic agency budgets passed by Congress each year.
Wednesday's Congressional Budget Office estimates indicate the government will have to borrow 40 cents for every dollar it spends this fiscal year, which ends September 30. Tax revenues are set to drop to their lowest levels since 1950, when measured against the size of the economy.
The report, full of nasty news, also says that after decades of surpluses for the federal Social Security pension program, its vast costs are no longer covered by payroll taxes.
Democrats and Republicans agree that stern anti-deficit steps are needed, but neither Obama nor his resurgent rivals in Congress are - so far - willing to put on the table cuts to popular benefit programs such as farm subsidies and entitlement programs for the elderly like Social Security and Medicare. The need to pass legislation to fund the government and prevent a first-ever default on US debt obligations seems sure to drive the two sides into negotiations.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
