Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

The Deficit Hasn't Vanished, But It Sure Has Lost Weight


Economic Trends

THE DEFICIT HASN'T VANISHED, BUT IT SURE HAS LOST WEIGHT

The federal budget deficit is coming down even faster than previously predicted, according to the Office of Management & Budget. The deficit for the current fiscal year will be $220 billion, $15 billion below what was projected last February and $85 billion below the estimate made before passage of President Clinton's five-year budget plan last fall. Thanks to an expanding economy, the trend is expected to continue, pushing the deficit down to $167 billion in fiscal 1995.

Indeed, on top of the nearly $500 billion the White House budget will already have trimmed from the deficit by 1998, higher revenues from the economic expansion and lower spending on entitlements such as unemployment compensation could pare some $200 billion. And federal employment will have been reduced by at least 272,000, to about 1.9 million by 1999--the lowest level since the Kennedy Administration.PAUL MAGNUSSON


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus