Monday, July 28, 2008
Will the next PM also face a record deficit?
The next US president is expected to face a record federal budget deficit of almost half a trillion dollars. The White House is tipped to lift its deficit forecast for 2009 to $490bn (£246bn) up from $407bn. The budget deficit measures how much more the government is spending than it is raising through taxes. The slowing economy is reducing the tax take and the government has launched a stimulus plan by making payments to 130 million households to boost spending.