White House: Federal Budget Deficit To Spike To $1.65 Trillion


2 days after Obama told us Washington would have to tighten its belt in his weekly address, the deficit will break another record this year...

Wall Street Journal
WASHINGTON—The White House projected Monday that the federal deficit would spike to $1.65 trillion in the current fiscal year, the largest dollar amount ever, adding pressure on Democrats and Republicans to tackle growing levels of debt.

WSJ's David Wessel reports on President Obama's proposed $3.73 trillion budget which calls for just over $1 trillion in spending cuts. Also, Apple plans to release a line of lower-priced iPhones that would compete with other smartphones on the market.

.The projected deficit for 2011 is fueled in part by a tax-cut extension that President Barack Obama and Republican lawmakers brokered in December, two senior administration officials said. It would equal 10.9% of gross domestic product, the largest deficit as a share of the economy since World War II.

Mr. Obama is proposing $3.73 trillion in government spending in the next fiscal year, part of a plan that includes budget cuts and tax increases that administration officials believe will sharply bring down the federal deficit over 10 years.


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