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White House: $1.2 trillion deficit, lower economic growth in 2012
 The White House budget office on Friday projected a $1.211-trillion deficit this year, down from the $1.327 trillion projected in February.
| Boy howdy, what an improvement... |
The mid-session review from the Office of Management and Budget (OMB) also projected lower economic growth in 2012 and 2013 than previously anticipated, and calls for $195 billion in economic stimulus to address an economy that "still faces significant headwinds."
| Mostly because Champ and the Democrats are in the way... |
While the $116 billion drop in the deficit could be used by both President Obama and congressional Republicans to argue they are making strides on the budget despite a poor economy, the predicted slow growth is more dismal news for the White House.
In fiscal year 2012, the White House downgraded its its projection to a 2.3 percent growth in gross domestic product compared to 2.7 percent when Obama released his budget in February. It lowered expectations in 2013 from 3 percent GDP growth to 2.7 percent.
| This year won't be 2.3 percent, it will be negative when we're done. It's called, 'recession'... |
The new projections incorporates economic data through June, so Friday's new 1.5 percent GDP growth advanced estimate for the second quarter of calendar 2012 is not included.
The revised deficit number total reflects both lower spending and lower revenue.
Spending is $143 billion less in 2012 and $49 billion less in 2013. This partially reflects the fact that Obama's stimulus measures were not enacted.
Revenue is $27 billion lower in 2012 and $138 billion lower in 2013. Technical revisions and lower economic growth contribute to the lower revenue.
| But as Ace would say, it's mostly the lower economic growth... |
But the update also increases the 2013 deficit from $901 billion to $991 billion.
| Re-elect Champ and that number will go up... |
Posted by: Steve White 2012-07-28 |
