WASHINGTON - The federal budget deficit is likely to grow to $12.6 trillion in 10 years, $5.5 trillion more than was projected by the Congressional Budget Office last month, because of expected policy or statutory changes that were not considered by the CBO, according to a watchdog group.

The Committee for a Responsible Federal Budget, a bipartisan, nonprofit organization based here, said in a Sept. 3 report that the CBO's projections are limited in scope and that the budget reality poses a greater threat to financial markets. To support a $12.6 trillion deficit, the U.S. debt held by the public would need to grow to 90% of gross domestic product by 2019, the report warned.

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