August 21, 200916 yr Who cares?Money grows on trees! By Brian Faler Aug. 21 (Bloomberg) -- The U.S. government’s long-term budget outlook is darker than expected, with projected deficits over the next 10 years totaling $2 trillion more than had been forecast, according to an Obama administration official. A White House budget review set for release Aug. 25 will show cumulative deficits over the next decade amounting to $9 trillion, up from $7.1 trillion that the administration predicted in May, the official said on condition of anonymity because the figures have not been made public. The deficit, the difference between government spending and revenue, is financed by borrowing from investors in the U.S. and other countries. The borrowed money is tacked onto the national debt. This year’s deficit will total $1.58 trillion, about $262 billion less than previously estimated, the administration said earlier this week. The lower deficit projection for the fiscal year ending Sept. 30 is largely attributable to the administration dropping contingency plans to provide hundreds of billions in additional aid to the financial industry, the official said. The administration’s mid-session review next week will update its economic and budget forecasts, with revised estimates of GDP growth, unemployment and next year’s projected deficit. The official declined to discuss other details in the report. To contact the reporter on this story: Brian Faler in Washington at [email protected]. http://www.bloomberg.com/apps/news?pid=20601087&sid=aSqYW9R78pQM
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