Congressional Analysts See Worse Long-Term Deficit

Tue Sep 7, 2004 10:29 AM ET

WASHINGTON (Reuters) - The federal budget deficit will balloon to $2.29 trillion over the next decade, congressional analysts said on Tuesday, a worse outlook than previously forecast and one likely to stir election-year debate about President Bush's economic policies.

The forecast from the nonpartisan Congressional Budget Office compares to the outlook for a $2.01 trillion deficit for 2005-2014 it provided in March under current economic policies.

The economy, particularly the deficit, has become a key theme between the two presidential candidates.

Bush blames the 2001 recession, the costs of the aftermath of Sept. 11 and the war on terror for the growing budget shortfall.

Democrats say Bush's tax cuts are responsible for turning the surplus he inherited into a record deficit, which they say threatens the future of Social Security and the Medicare health care program for the elderly.

The CBO also confirmed a preliminary forecast it put out in August showing an expected record deficit of $422 billion for the 2004 fiscal year.

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