GOP Congressional Constipation and Minority Status Results in Smaller than Expected Deficits

I'm sure they and the media will figure out a way to make it look like it's all the Republicans' doing anyway. As long as projections hold. If they don't hold, it will all be the Democrats' fault.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/12/AR2010041204364.html?nav=rss_politics



Obama team points to smaller deficit numbers

By David Cho
Washington Post Staff Writer
Tuesday, April 13, 2010

The federal deficit is running significantly lower than it did last year, with the budget gap for the first half of fiscal 2010 down 8 percent over the same period a year ago, senior Obama administration officials said Monday.

The officials attributed the results to higher tax revenue and to lower spending than projected on bailing out the financial system. If the trend continues for the rest of the year, it would mean the annual deficit would be $1.3 trillion -- about $300 billion less than the administration's projection two months ago for 2010.

But by suggesting the deficit may have peaked, administration officials are taking a political gamble. If the favorable number does not hold up in coming months and the budget shortfall surpasses the $1.4 trillion recorded last year, voters in the November midterm elections could punish the Democrats for offering false hope.

No official statement on the deficit is scheduled until the release of a late-summer review. The officials spoke on the condition of anonymity because the findings are preliminary and the results for the full year might not turn out so well.

The officials expressed cautious optimism about the figures but noted that the outlook remains uncertain. Although the economy has stabilized, growth has been lackluster. If the administration and Congress pursue a new round of measures to stimulate the economy, these could boost government spending. Officials also want to see whether the favorable trend in tax collections recorded in February and March holds up through the April tax season.

The improved budget figure comes at an opportune time for Democrats as they head into a difficult political campaign, with Republicans blaming the administration for running up record deficits.

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