Budget Deficit to Soar

More on the economy. This piece from Progress Report, 1/24/2008...

The nonpartisan Congressional Budget Office (CBO) released a report yesterday on the U.S. budget and economic outlook. The CBO projects the 2008 fiscal year budget deficit to rise to $219 billion, up from $163 billion in 2007. Yet the report added that "'funding that is likely to be needed to finance military operations in Iraq and Afghanistan could add $30 billion to outlays this year," making its total budget deficit projection for 2008 at $250 billion. CBO also stated that "funding for U.S. operations in Iraq and Afghanistan and other activities in the war on terrorism expanded significantly in 2007," from $120 billion in 2006 to $171 billion in 2007. President Bush "has requested $193 billion for war-related purposes in 2008, of which $88 billion has been appropriated thus far." Congressional Democrats reportedly predict that the budget deficit could increase to as much as $350 billion.