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US heading for record deficit
29.07.08
The US budget deficit will surge past $500 billion (£251.82 billion) next year, seriously curtailing the policies of whoever wins the White house race, according to gloomy new estimates.
The deficit will hit $482 billion - the biggest ever - in the 2009 budget year and will surge past the half-trillion dollar mark when new spending on the iraq war is added in. Ongoing economic turmoil could increase the deficit even further.
While it will be the biggest deficit ever in terms of dollars, several were higher in the 1980s and early 1990s as a percentage of GDP.
But that is cold comfort for presidential hopefuls Barack Obama and John Mccain.
"Whoever becomes the next president will have a very, very sobering first week in office," said senate Budget committee chairman Kent conrad.
The administration says the deficit was being driven by the sagging economy and the stimulus payments being made to 130 million households in an effort to keep the country from falling into a deep recession.
