Record 2004 federal budget deficit of $420 billion "a sign of progress?"

[Bush_Eats_Beef]

http://story.news.yahoo.com/news?tmpl=story&u=/nm/economy_budget_dc



WASHINGTON (Reuters) - The White House is expected to project soon a record federal budget deficit of about $420 billion for 2004, which could give ammunition to both sides of the election-year debate over tax and spending policies.

Congressional sources said on Tuesday the White House review of the current fiscal year, which ends Sept. 30, was likely to project a deficit about $50 billion greater than 2003. But the new figure would be nearly $100 billion less than forecast five months ago.

Republicans have said privately that they would view a better-than-expected projection as a sign of progress toward President Bush (news - web sites)'s goal of cutting the deficit in half in five years.

"It takes a lot of chutzpah," said Gene Sperling, a former economic aide to former Democratic President Bill Clinton (news - web sites) and now an adviser to Kerry. "There was supposed to be a $400 billion surplus this year," Sperling said, referring to Clinton-era projections. "That is an $800 billion deterioration and they are trying to brag about it."