🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

US Senate's Conrad sees $1.6 trillion in extra deficit

Published 03/19/2009, 06:42 PM
Updated 03/19/2009, 06:48 PM

WASHINGTON, March 19 (Reuters) - U.S. Senate Budget Committee Chairman Kent Conrad said on Thursday he expects federal deficit spending will be about $1.6 trillion greater over the next ten years than President Barack Obama's budget plan forecasts.

Obama submitted his budget outline to Congress last month which forecast almost $7 trillion in deficits through 2019, however a worsening economic picture is expected to make the budget outlook darker.

Conrad told reporters that the additional $1.6 trillion over the next decade was based on projections of the Democratic majority's budget committee staff.

The Congressional Budget Office is due to issue its revised forecasts for the deficit and economic outlook on Friday, taking into account Obama's budget proposal which included health care reform and other domestic programs such as curbing greenhouse gas emissions and expanding education.

The expectation of much higher deficit spending comes as much of Washington was already worried about exploding deficits and government borrowing to finance it. China last week raised concerns that massive deficit spending and near zero interest rates would erode the value of its huge U.S. bond holdings.

Conrad also said he did not plan to include any instructions in the budget plan he is crafting for health care or the greenhouse gas initiatives. Such instructions written into the budget would give it a privileged status and make it easier to become law, but likely spark a nasty fight with minority Republicans. (Reporting by Jeremy Pelofsky and Richard Cowan, editing by Jackie Frank)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.