Obama budget never achieves balance, deficit understated by $2.3 trillion

Peter R. Orszag Director of the U.S. Congressi...Image via Wikipedia
Washington Times:

Congress‘ chief scorekeeper says President Obama’s budget never achieves primary balance, the key measure the White House said would show the country is living within its means.

In a preliminary analysis the budget Mr. Obama sent to Capitol Hill last month, the Congressional Budget Office says deficits will total $9.5 trillion over the next decade and never once will it be in balance — even when subtracting interest costs.

The closest the government will come to balance is in 2018, when the deficit will be $902 billion and net interest costs are projected to be $725 billion — still leaving a substantial deficit of $177 billion.

That contradicts a talking point for Mr. Obama and his administration, where officials have said their budget would have the government live “within our means,” meaning it was taking in enough revenue each year to pay for its operations, minus the interest costs on the debt.

Congress is required to use CBO’s estimates when writing bills and producing a budget, so the new estimates could prove devastating to the president’s hopes of enacting his plans.

...
It does fit a patter n with the administration in recent months. Just a few days ago the administration made claims about domestic energy productions that were inconsistent with the reality of their policies which are restricting energy production. In the case of the budget, they are making assumptions that have at best a remote probability of happening. Republicans in Congress clearly are not buying it and Sen. Sessions has several YouTube hits where administration figures have had to admit their position does not make much sense.
Enhanced by Zemanta

Comments

Popular posts from this blog

Iraq says civilian casualties in Mosul caused by ISIS booby trap, not US air strike

Liberal fascists strike against Trump supporters in Berkeley

OPEC reduces production again in price maintenance program