Projections: $9.3 Trillion Budget Deficit In Next Decade
The non-partisan Congressional Budget Office has their raw numbers on Obama’s budget items and they’re much bigger than the administration’s.
Now, to the best of my knowledge, these numbers don’t include the cost savings that would come as a result of his multiple agendas, but nonetheless…
The officeâ€™s estimates of deficits in the fiscal years 2010 through 2019 â€œexceed those anticipated by the administration by $2.3 trillion,â€ the budget office said in a report.
The deficits under the Obama plan would be $4.9 trillion more than the deficits that would be projected if there were no changes in current laws and policies â€” what the nonpartisan budget office calls its baseline assumption.
The startling new figures have enormous implications, political as well as fiscal. They are certain to bring new expressions of alarm and dismay from deficit hawks on Capitol Hill, where the presidentâ€™s $3.6 trillion budget proposal for the next fiscal year, which begins in October, has already stirred debate.
Here’s what that would look like when put in historical context with other budgets…
So what’s the administration’s response?
President Obamaâ€™s budget director, Peter R. Orszag, conceded in a news briefing on Friday that annual deficits of 4 to 5 percent of gross domestic product, as envisioned in the officeâ€™s report, are â€œultimately not sustainable.â€
But Mr. Orszag insisted that administration officials â€œremain confidentâ€ in what he called â€œthe four key principlesâ€ of the presidentâ€™s budget outline: health care reform, improvements in education, energy efficiency, and reducing the annual deficit in half by the end of the presidentâ€™s first term from the extraordinary levels it has suddenly reached because of the bailout and stimulus spending this year â€” spending that the budget office said would help to bring an end to the recession by the end of 2009.
But, once again, here are the trillion dollar questions: if we don’t address these problems now what will the deficits be in the future? Would they be more? Less?
Listen, we all know that our health care costs and dependency on foreign oil are unsustainable. And there’s plenty of waste in the Medicare/Medicaid system. There are easily trillions to saved there in the next decade. Also, let’s not forget the ballooning Pentagon budget, which is thankfully being reigned in this next year. And then there’s Social Security reform, but it’s still debatable that a Dem Congress will allow any changes in that system, Democratic President or not.
The CBO’s blog has more.