Obama's budget would widen deficits - CBO

President Barack Obama's proposed budget for the next fiscal year would widen projected deficits over the coming decade due to lower taxes and higher interest payments, Reuters cited the nonpartisan Congressional Budget Office as saying on Friday.Though the budget deficit would shrink by more than half when measured against the size of the economy over the next several years, it would increase after that point due to the rising cost of servicing the country's debt, the CBO said.
It estimated that interest payments on the debt would increase over the coming decade to 3.9 percent of gross domestic product from 1.7 percent.
Under Obama's proposed policies, deficits would total $9.5 trillion between 2012 and 2021 -- $2.7 trillion more than the total if the current policies were kept in place, the CBO said.The CBO analysis came as Obama and Republicans grappled on a variety of fiscal issues, from spending levels in the current fiscal year to an upcoming vote to raise the country's debt limit.