U.s. Deficit | featured news

Congressional Budget Office predicts long-term deficits vastly exceeding White House estimates.

The federal deficit through the first four months of the budget year is running at a record-breaking pace even though the deficit in January was slightly smaller than expected.

Determined to have a deficit commission with or without Congress' backing, President Barack Obama plans to announce on Thursday that he is establishing a panel similar to – although weaker than – the one lawmakers rejected.

President Barack Obama renewed his pledge on Saturday to make job creation his top priority in 2010 but said it was also critical to rein in a record budget deficit that threatened economic recovery.

Congressional experts pegged the 2010 budget deficit at $1.35 trillion, a slight improvement from the $1.38 trillion estimate in August, but the overall picture of the government's finances remains bleak.

Increase is much larger than previously planned, but is necessary to avoid defaulting on debts next year, House majority leader says.

The US budget deficit more than tripled to a record $1.4 trillion in the year to 30 September, the US Congress estimates.