U.S. deficit predicted to hit $407 billion

The U.S. government continues dive deeper into red ink. According to the Congressional Budget Office, the fiscal-2008 budget deficit projection is $407 billion, compared with fiscal 2007’s $161 billion deficit. The ballooning number is due to a weak economy and the costs of funding the wars in Iraq and Afghanistan. The fiscal-2009 budget year, which begins Oct. 1, is expected to be even higher, with a $439 billion shortfall predicted. Congressional Democrats reacted to the report by accusing President Bush of causing the deficit through reckless spending. “The federal debt will grow at an unsustainable rate, which means more borrowing from China, more borrowing from Japan and more borrowing from oil exporters like Saudi Arabia,” Senate Budget Committee Chairman Kent Conrad, D-N.D., said in a statement. “It couldn’t be clearer that we need a new fiscal course for the country.” In turn, Jim Nussle, director of the Office of Management and Budget, issued a statement calling President Bush’s spending plan “responsible” and accused congressional Democrats of trying to add billions in extra spending to the budget.