US fiscal deficit to hit $1.3t: White House
WASHINGTON. September 2. KAZINFORM The US federal government's deficit is projected to reach $1.316 trillion for the 2011 fiscal year, and the nation's unemployment rate is forecast to decline next year, the White House Office of Management and Budget (OMB) said Thursday; Kazinform refers to China Daily.
The figure is 329 billion dollars or about 20 percent lower than the $1.645 trillion deficit forecast in February, due to a combination of higher-than-expected receipts and lower-than-expected outlays, said the office in a report.
The US Treasury figures showed that the US federal deficit stood at around $1.1 trillion in the first ten months of the 2011 fiscal year, which began in October 2010, indicating three years in a row that the US fiscal imbalance would have topped 1-trillion-dollar mark.
The federal deficit is now projected to equal 8.8 percent of gross domestic product (GDP) for the 2011 fiscal year, down from 10.9 percent predicted in February, the office said in a Mid- Session Review (MSR) report updating the administration's fiscal situation and the economic outlook.
The total reduction of federal deficit is forecast to reach $1. 45 trillion over the next decade, primarily due to the bipartisan debt cut deal inked last month.
The White House predicted that federal deficit to GDP ratio would edge down to 6.1 percent in the 2012 fiscal year, on the back of spending cuts and a solid economic growth pace; Kazinform cites China Daily.
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