This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/8481305.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
US deficit 'set to hit $1.35tn' US deficit 'set to hit $1.35tn'
(41 minutes later)
The US budget deficit is expected to reach $1.35 trillion (£837bn) in 2010, according to US Congress estimates.The US budget deficit is expected to reach $1.35 trillion (£837bn) in 2010, according to US Congress estimates.
The Congressional Budget Office (CBO)had previously estimated that the deficit would hit $1.38tn but has revised down its forecast.
In 2009, the US deficit hit a record $1.4tn - equal to 9.9% of gross domestic product (GDP) - and the highest since the end of World War II.In 2009, the US deficit hit a record $1.4tn - equal to 9.9% of gross domestic product (GDP) - and the highest since the end of World War II.
President Obama will submit his budget plan on 1 February. President Obama will make his first State of the Union address on Wednesday and will submit his budget plan on 1 February.
He is expected to announce a three-year partial spending freeze.
The savings - expected to be about $15bn off next year's budget and to amount to $250bn during the next 10 years - are aimed at reducing the country's massive deficit.
Shrinking deficit
The Congressional Budget Office (CBO) said the large deficits in 2009 and 2010 reflected:
• an imbalance between revenues and spending that predated the recession
• sharply lower revenues and higher spending in the recession
• the costs of various federal policies implemented in response to the global downturn.
However, the CBO's forecast was a downwards revision to its previous estimate of $1.38tn.
It expects deficits to shrink over the coming years as economic recovery gets underway, with the deficit falling to $475bn in 2014.
But it says the deficit will then start to rise again, reaching $687bn in 2020.