The non-partisan government agency the Congressional Budget Office (CBO) issued a report that projected that the Obama administration’s program agenda and budget plans would push deficits up, generating a cumulative near $1 trillion a year, over the next ten years. This is nearly $2.3 trillion more for that period than the Obama administration officials predicted when the president unveiled his spending plan just a little under 30 days ago. Factors effecting the projection are, of course, the deteriorating economic conditions of the country and the world that in the U.S. alone will cause the federal deficit to skyrocket past $1.8 trillion this year.
By the CBO’s estimate, the debt of the United States would grow to 82% of the overall economy by 2019 if the current policies of the Obama’s administration are maintained. This in comparison to with a pre-recession average in 2008 of 40%.
Even though the current plan issued by the Obama administration would come close to meeting the president’s goal of cutting the deficit in half by the end of his first term in 2012, the CBO predicts that the nation’s annual operating deficit would never drop below 4% of the overall economy over the next ten years, a growth rate that would not be sustainable because the national debt would grow too rapidly accordingly to the administration.
While the CBO report, which is issued publicly and released on a consistent basis makes such projections regardless of the political party in office, the new report will most likely cause difficult complications to overcome for the Obama administration efforts to win over congress for their approval of the presidents $3.6 trillion budget request for the fiscal year that begins October 1. Democrats in the House of Representatives and the Senate are currently detailing fine points on the Obama administration’s spending plans, while Republicans of both legislative bodies are expected to object strongly to major aspects of the plan that include a major expansion of the healthcare coverage plans to cover the uninsured, and taxes on greenhouse gas emissions.
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