CBO projects budget deficit to be $368 billion in '05 (not incl. Iraq war)

[Bush_Eats_Beef]

http://money.cnn.com/2005/01/25/news/economy/congress_budget/index.htm?cnn=yes

Wider budget deficit seen
Source: Congressional Budget Office projects federal budget deficit will be $368 billion in FY2005.
January 25, 2005: 10:06 AM EST

WASHINGTON (CNN) - The U.S. budget deficit is projected by the Congressional Budget Office to reach $368 billion this year, fiscal year 2005, according to a source familiar with the CBO's budget outlook report being released Tuesday morning.

The number is worse than the CBO's previous $348 billion forecast for the 2005 fiscal year that began Oct. 1.

These are baseline budget figures and do not include Iraq war costs, which will make the deficit larger.

[fryguy]

1. is this discounting costs with iraqi oil proceeds?

/sarcasm

so where's the media calling the administration out on low-balling the price tag so bad? its now cost significantly more than Lindsey suggested and was shouted down/thrown out of the white house for....

[Tempest]

2. But wait a minute

Bush promised to half the deficit by 2008.

Do you mean he *gasp* lied?

[Bush_Eats_Beef]

3. I wonder if he meant "I'll increase it by half"...

Freedom is on the march, and as John Snow said back in June 2004, "The economy is firing on all cylinders!"



http://www.whitehouse.gov/ask/20040618_2.html

"Ask the White House," June 18, 2004

jay, from charlotte writes: I recently had a friend challange me to tell him how in any way the economy is better now then before Pres. Bush took office. Unfortunately, I could not defend my position. Could you help.

John Snow: You can feel very confident in your position. First, this Administration inherited an economy that was in steep decline and weakened further by the bursting of the tech bubble. The United States suffered further uncertainty from terrorist attacks and corporate scandals. President Bush faced and addressed each challenge, and despite the serious setbacks, we now have a strong economy that is growing stronger.

GDP, the best overall measure of economic activity, has risen over the past year at the fastest rate in 20 years. Productivity, which translates into faster income growth and a higher standard of living, grew at the fastest 3-year rate in 5 decades from 2000-2003. Since the President has been in office, after-tax income has risen by 11 percent – that means Americans are keeping more of their hard-earned money. Today household wealth and homeownership rates are at all-time highs.

The President’s economic leadership and pro-growth policies have led to an economy that is firing on all cylinders.

[snippy]

4. The White House has explained that Bush will use a fictional number

as the starting point for his deficit reduction calculations.

White House frames budget around campaign promise

By Edmund L. Andrews

The New York Times
. . .

To make Bush's goal easier to reach, administration officials have decided to measure their progress against a $521 billion deficit they predicted in February rather than last year's actual shortfall of $413 billion.

By starting with the outdated projection, Bush can say he already has reduced the shortfall by about $100 billion and claim victory if the deficit falls to $260 billion.

. . .

"I've been watching this more than 30 years, and I have never seen anything quite this egregious," said Stanley Collender, a longtime author on budget issues and a senior vice president at Financial Dynamics, a communications firm in Washington.

"They are cutting the deficit from a number they never believed in the beginning," Collender said, referring to the decision to measure progress against the unrealized $521 billion deficit projection. "What if they had forecast that the deficit would be $800 billion last year? Would they take credit for having cut it by half?"

http://seattletimes.nwsource.com/html/nationworld/2002138211_newbudget02.html