Obama Sends Congress $3.8 Trillion Budget, Soaring Deficits Projected
FOXNews
President Obama sent Congress a $3.8 trillion budget Monday for fiscal year 2011, pushing a plan that includes new jobs-creation programs but is projected to add nearly $1.3 trillion in deficit spending on top of the current year's projected $1.6 trillion deficit.
According to the plan, the 2011 deficit of $1.267 trillion would fund nearly the entirety of the year's discretionary spending, which is $1.415 trillion or 37 percent of the government's total outlays. Mandatory spending on items such as entitlements and
interest payments make up the rest.
The Senate moved last week to extend the nation's debt limit to $14.3 trillion to accommodate the projected gap for the current spending year, which ends Sept. 30, but with another $1.3 trillion hole next year, the nation's debt could reach $15.6 trillion by Oct. 1, 2011.
That would surpass the nation's annual gross domestic product. A $1.6 trillion deficit would represent 10.6 percent of current GDP, while 2011's budget deficit would be 8. 3 percent of GDP. The White House says over the next 10 years, the average deficit will represent only 4.5 percent of GDP annually.
Last year's deficit was $1.42 trillion.
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