US budget deficit: Bush needs extra $80 billion for military operations

The &to=http:// ' target=_blank>White House estimated on Tuesday that the U.S. budget deficit for 2005, including an extra $80 billion for Iraq and Afghanistan operations, will total $427 billion.

"In the 2006 budget that we release on Feb. 7, OMB will estimate that the 2005 deficit, including the outlay effects from the supplemental we are discussing today, will be 3.5 percent of GDP or in nominal terms $427 billion," said a senior administration official in a news briefing.

He referred to supplemental spending of more than $80 billion for &to=http:// ' target=_blank>military operations in Iraq and Afghanistan, making the White House estimate for the deficit higher than the $368 billion forecast by the Congressional Budget Office (CBO), informs Reuters.

According to the Turkish Press, CBO noted that the law governing its projections requires its estimates to be based solely on spending and revenue measures already on the books.

Under these baseline estimates, the deficit would ease to 295 billion dollars in fiscal 2006 and 261 billion in fiscal 2007.

The CBO`s long-range outlook, which goes through fiscal 2015, projects the &to=http:// ' target=_blank>US government will remain in the red until fiscal 2012. The cumulative deficits would be 1.188 trillion dollars in the 2006-2010 period and 855 billion dollars in the 2006-2015 period, CBO estimated.

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