Tuesday, 29 Jul, 2008 Politics

President Bush leaves the highest ever record budget deficit in the history that has reached $482 billion, according to the latest budget report.

White House administration said that the reason for the worsening situation is slowing economy and a $150-billion bipartisan stimulus package, while Democrats mention Bush's tax cuts and fiscal management during his presidency.

Jim Nussle, director of the Office of Management and Budget, explained that "near-term deficits are both temporary and manageable if, and only if, we keep spending in check, the tax burden low and the economy growing." " He added that the according to the report the percentage of the US economic output is around 3.3% of the gross domestic product. The deficit for fiscal 2008, at $389 billion is a bit less than it was expected.

Nussle said that the deficit is under control and OMB has a plan to cope with it. The gross domestic product for US is estimated to increase by 1,6% in 2008, which is lower than in February's projection and is explained by the growing prices for oil and other supplies, turmoil in US credit markets and worsening situation with the housing market.

Democrats attributed the budget deficit to the president's big tax cuts freewheeling spending. ""If we gave Olympic medals for fiscal irresponsibility, President Bush would take the gold, the silver and the bronze, because he's got the three highest record deficits ever," " said Sen. Kent Conrad (D-S.D.), chairman of the Senate Budget Committee. ""He sets records in every single category: 2009 would be the gold; 2004 the silver; 2008 the bronze."

Rep. John M. Spratt Jr. said that Bush entered the presidency with the biggest budget surplus, now leaving with the biggest deficit.

Nussle sided with the president, saying that the necessity to address national security after the terrorists attack on Sept. 11 led to the deficit.

Conrad opposed that the president ignored the problems of taxes cuts and said that Bush spent too much on the Iraq war off the regular budget.

Source: Los Angeles Times

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