WASHINGTON — The Congressional Budget Office Friday projected that the budget deficit will grow to a record $1.8 trillion this fiscal year if the president’s budget plan is enacted — $466 billion more than the Obama administration estimated in its fiscal 2010 budget summary that was released on Feb. 26.
The CBO’s preliminary analysis showed a deficit of $1.38 trillion for fiscal 2010, which was higher than the $1.17 trillion projected by the administration.
Republicans pounced on the news, claiming that it shows President Obama’s proposals are not working.
“The numbers released today by the nonpartisan [CBO] make clear that the president’s budget will lead our nation into a far worse fiscal catastrophe than his own numbers suggest,” Rep. Paul Ryan, R-Wis., the top Republican on the House Budget Committee, charged in a statement.
But House Democratic leaders countered the charge, saying the CBO projections merely reflect the quickly deteriorating economy.
“This new forecast was expected as a result of how quickly the economy has weakened,” said House Majority Leader Steny Hoyer, D-Md.
“President Obama’s budget blueprint remains a remarkably honest one, which accurately accounts for the cost indexing of the alternative minimum tax, Medicare doctor payments, and two wars,” Hoyer said. “The budget will help us lower the cost of health care. It will also make the investments in health care, energy, and education that are necessary for future prosperity, while spelling out how those investments will be paid for.”