Federal deficit soars

By Manu Raju
The Hill
Posted: 07/16/08

Congress and the White House are driving up the deficit, alarming budget hawks as the government responds to the sputtering economy.

The nonpartisan Congressional Budget Office (CBO) has estimated that, for the first nine months of fiscal 2008, the government incurred a $268 billion deficit. That’s $148 billion more than a similar period last year — although about half that increase went toward economic stimulus checks. And much more spending is on the way.

“We’re spending like a drunken sailor,” said Sen. Jeff Sessions (R-Ala.), who predicted the deficit would double this year.

But in an election year dominated by domestic concerns, and with the government moving aggressively to address the economy, attacking the swelling budget deficit is not high on the agenda of either party.

“When there is an economic downturn, as we’re experiencing, you expect deficits to jump,” said Sen. Kent Conrad (D-N.D.), chairman of the Budget Committee. “I think it would be very helpful if we were demonstrating something about the long term.”

Political rivals have engaged in election-year finger-pointing. The Bush administration blames Democrats for not dealing with the nation’s entitlement programs; Democrats on the Hill fault President Bush for the cost of the Iraq war.

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