Obama budget: $901 billion deficit in 2013 (Doesn’t even count Fed Bailouts)
NEW YORK (CNNMoney) — President Obama will propose a budget on Monday that forecasts a $901 billion deficit in 2013, and includes plans to make targeted investments in areas like infrastructure while hiking taxes on the rich.
The White House bills the document as a “blueprint for how we can rebuild an economy where hard work pays off and responsibility is rewarded.”
But given the intense acrimony in Washington, especially on budget issues, few provisions in the document are likely to ever become law.
The budget will project that the deficit for fiscal year 2012 will top $1.3 trillion, before falling in 2013 to $901 billion, or 5.5% of gross domestic product.
By 2022, the deficit is forecast to fall to $704 billion, or 2.8% of GDP, according to the White House.
Senior administration officials discussed details of the budget with reporters on Friday night. The full budget will be released Monday morning.
The administration officials said the budget is very much a continuation of two previous Obama keystones.
This first is a speech delivered last year in Kansas where he presented Americans with a choice: a “fair shot” with him, or a return to “you’re on your own economics.”
The second is last month’s State of the Union address, which focused on the broad themes of income inequality.
The 2013 budget is somewhat limited in scope because the White House had to fit spending on discretionary accounts below the limits set in the Budget Control Act approved by Congress last summer.
Over a decade, the cuts enshrined in the Budget Control Act total in the neighborhood of $1 trillion in discretionary spending.
That means it’s no easy feat to find room for additional spending on infrastructure, research and development and education — investments Obama says are critical.
The White House said that in order to fit under the caps, it had to lower spending in certain areas. To that end, discretionary spending is projected to fall from 8.7% of GDP in 2011 to 5.0% in 2022.