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Obama budget sees increased deficit
|Last Edited||Jason Feb 10, 2012 09:05pm|
|News Date||Saturday, February 11, 2012 05:00:00 AM UTC0:0|
|Description||President Obama’s 2013 budget due out Monday will estimate the deficit for 2012 to be $1.33 trillion, higher than the $1.29 trillion deficit in 2011, according to senior administration officials. |
The increase happens largely because the budget assumes enactment of a $350 billion stimulus package, including extension of the payroll tax cut. That package is a scaled-down version of the $447 billion American Jobs Act that Obama proposed in the fall.
The budget estimates that the deficit in 2013 will be $901 billion. This means that Obama will fail to cut the deficit in half after his first term, something he once vowed to do.
Last year’s budget had a rosy prediction that the deficit would decline to $768 billion in 2013, about half the $1.4 trillion deficit of his first year.