Higher Budget Deficit Projected

05.11.09 | FL News Team

This year's federal budget deficit will be higher than expected, according to a new White House forecast. This year's deficit is expected to hit 1.84 trillion dollars, 89 billion more than originally projected. Officials cite a number of factors, including the long recession, weak tax receipts, soaring unemployment claims and the costs of corporate bailouts.

In a blog entry, White House budget chief Peter Orszag said the higher deficits are, "driven in large part by the economic crisis inherited by this administration." President Obama has vowed to halve the federal deficit by the end of his first term.