Administration revises deficits upward

Administration revises deficits upward

May 11, 2009 (United Press International) -- Budget deficits for the next two years would be higher than first thought because of the recession, U.S. President Barack Obama's administration said Monday.

Deficits for 2009 and 2010 both will swell by be nearly $90 billion more than had been expected in February, when the administration released its first budget outline and deficit estimate, The Hill reported.

The 2009 deficit now is projected to be $1.84 trillion, 12.9 percent of gross domestic product, the White House said. The administration in February predicted the deficit would be $1.75 billion, or 12.3 percent of GDP.

The 2010 deficit will shift to $1.26 trillion, 8.5 percent of GDP, the White House estimated. The February estimate was 8 percent of GDP.

The White House's revised estimate said corporate income tax receipts would be $18 billion less this year and $43 billion less next year than originally expected. Individual tax receipts would be $14 billion less over the next two years as well, the administration said.

The White House also raised its spending estimates for the next two years for the bailout of financial institutions by $15 billion and Social Security by $14 billion, the Washington publication said.

Administration officials blamed the recession and the George W. Bush administration for the dismal fiscal outlook.