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| Version 1 | Version 2 |
|---|---|
| US deficit to soar towards $1.6tn | US deficit to soar towards $1.6tn |
| (11 minutes later) | |
| The US budget deficit will soar to almost $1.6 trillion (£978bn) this year, the highest on record, both the White House and Congress have warned. | The US budget deficit will soar to almost $1.6 trillion (£978bn) this year, the highest on record, both the White House and Congress have warned. |
| Fuelled by President Obama's $787bn stimulus package and reduced tax revenues due to the recession, it compares with a $455bn deficit in 2008. | Fuelled by President Obama's $787bn stimulus package and reduced tax revenues due to the recession, it compares with a $455bn deficit in 2008. |
| The White House says the deficit will grow further, predicting it will hit a cumulative $9tn from 2010-2019. | The White House says the deficit will grow further, predicting it will hit a cumulative $9tn from 2010-2019. |
| However, it continues to expect the US economy to start to recover this year. | However, it continues to expect the US economy to start to recover this year. |
| The White House expects US unemployment to pass 10% this year, before slowly declining in 2010. The most recent official figures showed the rate at 9.4% in July. | The White House expects US unemployment to pass 10% this year, before slowly declining in 2010. The most recent official figures showed the rate at 9.4% in July. |
| 'Dire situation' | 'Dire situation' |
| The latest deficit predictions have come from the White House and the non-partisan Congressional Budget Office (CBO). | The latest deficit predictions have come from the White House and the non-partisan Congressional Budget Office (CBO). |
| The alarm bells on our nation's fiscal condition have now become a siren Senate Republican minority leader Mitch McConnell | The alarm bells on our nation's fiscal condition have now become a siren Senate Republican minority leader Mitch McConnell |
| "Overall, it underscores the dire fiscal situation that we inherited, and the need for serious steps to put our nation back on a sustainable fiscal path," the White House's Office of Management and Budget director Peter Orszag said. | "Overall, it underscores the dire fiscal situation that we inherited, and the need for serious steps to put our nation back on a sustainable fiscal path," the White House's Office of Management and Budget director Peter Orszag said. |
| Christina Romer, one of the president's economic advisers, said the recession "was simply worse" than first predicted. | Christina Romer, one of the president's economic advisers, said the recession "was simply worse" than first predicted. |
| She said the White House now estimated that the economy will contract by 2.8% in 2009, more than double when it predicted earlier this year. | She said the White House now estimated that the economy will contract by 2.8% in 2009, more than double when it predicted earlier this year. |
| It now expects growth of 2% in 2010, down from its previous prediction of 3.2%, but with economic expansion recovering to 3.6% in 2011. | It now expects growth of 2% in 2010, down from its previous prediction of 3.2%, but with economic expansion recovering to 3.6% in 2011. |
| 'Out of control' | 'Out of control' |
| Republicans said the latest deficit figures were a serious concern. | Republicans said the latest deficit figures were a serious concern. |
| "The alarm bells on our nation's fiscal condition have now become a siren," said Senate Republican minority leader Mitch McConnell. | "The alarm bells on our nation's fiscal condition have now become a siren," said Senate Republican minority leader Mitch McConnell. |
| "If anyone has any doubts that this burden on future generations is unsustainable, they're gone - spending, borrowing and debt are out of control." | "If anyone has any doubts that this burden on future generations is unsustainable, they're gone - spending, borrowing and debt are out of control." |
| Analysts said the latest deficit figures increased the likelihood of US tax rises once it is confirmed that the country has exited recession. | |
| The CBO said such a move would be required. | The CBO said such a move would be required. |
| "Putting the nation on a sustainable fiscal course will require some combination of lower spending and higher revenues than the amounts now projected," it said. | "Putting the nation on a sustainable fiscal course will require some combination of lower spending and higher revenues than the amounts now projected," it said. |