White House predicts record $1.47 trillion deficit

The government is now borrowing 41 cents of every dollar it spends


Andrew Taylor
July 23, 2010 11:04PM (UTC)

The White House says the government is now borrowing 41 cents of every dollar it spends.

New estimates predict the unemployment rate will average 9 percent next year and the budget deficit will be $1.42 trillion -- even bigger than previously expected.

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That's because tax revenues are still slumping and the economic recovery is going slower than hoped.

The deficit for the current fiscal year is forecast to hit a record $1.47 trillion, about the same as the administration predicted in February.

President Barack Obama and Democrats controlling Congress are mostly taking a pass on deficit reduction this year as they try to spark job growth and await recommendations from Obama's deficit commission.

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Andrew Taylor

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