Zee Media Bureau
New York/New Delhi: A non-partisan Congressional Budget Office (CBO) on Friday said that President Barack Obama's 2014 budget would cut deficit by USD 1.1 trillion over the coming decade.
The USD 1.1 trillion in deficit reduction estimated by CBO is significantly less than the USD 1.8 trillion in such reduction claimed by the White House when its budget plan was first released in April.
The Obama budget deficit would hit a low point of USD 399 billion, or 2.0 percent of gross domestic product, in 2017, then would rise to USD 606 billion, or 2.4 percent of GDP, by 2022 - about USD 283 billion less than under CBO's estimate for that year.
Deficits under Obama's plan would be higher through 2015 because the White House assumes that automatic spending cuts known as sequestration are replaced, which would allow higher levels of discretionary spending by government agencies and the military. The CBO estimates assume that the sequester savings of around USD 1 trillion over a decade remain in place.
With Agency Inputs