The White House predicted Friday that the federal budget deficit will grow to $1.47 trillion this year. While the number is lower than earlier administration estimates, it is still a record, and the government is now borrowing $0.41 for every dollar spent.
The estimate reflects a debt-to-GDP ratio of 10%, down from the 10.64% predicted by the administration in February, according to usgovernmentspending.com, a Web site that provides historical and comparative information on the budget deficit.
In an update of the 2010-2020 budget presented to Congress, the White House’s Office of Management and Budget said the improvement in this year’s deficit was due to projected lower government spending.
The news service AFP reports expenditures for 2010 are now projected to be $118 billion lower than projected in February, totaling $3.6 trillion dollars, or 24.6% of GDP. The forecast reduction was due in large part to lower estimates for spending on unemployment and deposit insurance, and non-defense discretionary programs.