U.S. deficit to exceed $1.8 trillion this year

The federal budget deficit for the current year will top $1.8 trillion under the latest estimates produced by congressional economists, say Capitol Hill aides briefed on the figures. The Congressional Budget Office's estimate of President Barack Obama's budget for next year show a worsening picture for 2010 as well, with a deficit of almost $1.4 trillion expected under administration policies. Obama had predicted about $200 billion less. The aides spoke on condition of anonymity in advance of public release of the figures later Friday. The latest figures, fueled by the $700 billion Wall Street bailout and diving tax revenues stemming from the worsening recession, would shatter the previous record for a federal shortfall of $459 billion, set just last year. Democrats insist the huge deficit won't crimp Obama's ambitious agenda. The White House reminds daily that Obama inherited a terrible fiscal situation. Democrats in Congress are readying Obama's budget for preliminary votes next week, and they promise to cut the deficit in half within five years. Still, long-term deficits equal to 3 percent of the size of the economy have many lawmakers uneasy. Democrats are likely to curb somewhat Obama's request for a 9 percent increase in non-defense agency budgets.