$1.3-trillion U.S. budget deficit expected
Last Updated: Thursday, August 19, 2010 | 5:39 PM ET
CBC News
This year's U.S. federal budget deficit will surpass $1.3 trillion US, the non-partisan Congressional Budget Office said Thursday.
That would be an improvement of $71 billion over last year's record $1.4 trillion shortfall between revenue and spending.
Republicans blame 'unsustainable' spending driven by President Barack Obama's ambitious agenda for the deficit. (Pablo Martinez Monsivais/Associated Press) The CBO attributed the red ink to lower tax revenues as the slow economy hits incomes and employment, and higher spending on stimulus and social programs.
Despite the slight improvement, the 2009 and 2010 shortfalls are the largest ever, by far. Each is three times bigger than the government's annual deficit had ever been before.
Polls suggest voters are unhappy with growing deficits, less than two months from elections that will determine which party controls Congress.
And that is expected to provide an impetus to lawmakers to resume their fight over conflicting agendas of cost and tax cutting, and economic stimulus when they return from their summer recess in September.
Republican Senator Judd Gregg blamed the deficit on "unaffordable and unsustainable" spending driven by President Barack Obama's ambitious agenda. Democratic Senator Kent Conrad said spending to revive the economy remains the top priority.
Both lead their parties on the Senate budget committee.
With files from The Associated Press
