Wednesday, January 26, 2011

CBO: this year's budget deficit to hit $1.5T

CBO: this year's budget deficit to hit $1.5T

By ANDREW TAYLOR, The Associated Press – Wed Jan 26, 2:07 pm ET

WASHINGTON – A continuing weak economy and last month's bipartisan tax cut legislation will drive the government's deficit to a record $1.5 trillion this year, a new government estimate predicts.
The eye-popping numbers mean the government will continue to borrow 40 cents for every dollar it spends.

The new Congressional Budget Office estimates will add fuel to a raging debate over cutting spending and looming legislation that's required to allow the government to borrow more money as the national debt nears the $14.3 trillion cap set by law. Republicans controlling the House say there's no way they'll raise the limit without significant cuts in spending, starting with a government funding bill that will advance next month.

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