President Barack Obama's budget plans would rack up $9.8 trillion more US debt by 2020, or $1.2 trillion more than the White House has forecast, the Congressional Budget Office said on Friday. Republicans seized on the estimate to fault Obama, saying his plans would raise US government debt to an “alarming” 90 percent of the US economy. Obama pledged when he unveiled his budget for fiscal 2011 in early February to cut the annual US deficit in half by the end of his first term. However, he has faced criticism from Republicans for proposing to raise taxes on wealthy Americans and not doing enough to rein in spending. On February 18, he named a bipartisan panel to tackle the exploding US deficits and promised to give it broad leeway to recommend ways to put the US fiscal house in order. CBO said it would publish its full analysis of Obama's budget plan later this month. But working with staff of the congressional Joint Committee on Taxation, it made a preliminary estimate that Obama's proposals would boost the budget deficit in fiscal 2010 to $1.5 trillion, or 10.3 percent of US gross domestic product. “Measured relative to the size of the economy, the deficit under the President's proposals would fall to about 4 percent of GDP by 2014 but would rise steadily thereafter,” CBO said. CBO said its 2010 budget deficit estimate was $56 billion less than the administration's figure. But that good news for the White House was overshadowed by CBO's longer forecast. “Largely because it projects lower baseline revenues in future years, CBO estimates deficits that are $75 billion higher for 2011 and $1.2 trillion greater over the 2011-2020 period than what the administration anticipates under the President's budget,” CBO said.
