The federal budget deficit is running at a pace that is more than double last year's imbalance through the first four months of the budget year, Tuesday, Feb. 12, 2008. (CBS/AP)
WASHINGTON (AP) - President-elect Barack Obama's choice to run
the White House Budget office is predicting bruising deficits over
the next decade.
Peter Orszag told the Senate Budget Committee to expect budget
deficits equaling 5 percent of the size of the economy for the next
five or ten years. That would mean deficits of $750 billion or so
over the next couple of years and steadily exceeding $1 trillion by
the end of the next decade.
Orszag says a long-term goal of the incoming administration is
fiscal restraint to prevent even worse deficits.
Current projections see a deficit for the ongoing budget year
exceeding $1 trillion -- and that's before enactment of Obama's
$800 billion or so economy recovery plan. The Congressional Budget
Office predicts a $1.2 trillion deficit for 2009, about 8 percent
of gross domestic product.