The US Senate approved this afternoon by a vote of 51-49 a blueprint budget for 2007 that totals $2.8 trillion. This budget was not radically different from the one proposed by the White House last month. The Senators surprised the White House though, by adding a total of $18 billion in expenditures allocated along a number of programs that the administration had intended to either cut or at least freeze at last years level of expenditures.
The budget is predicated on the assumption that the federal deficit will amount to $350 billion in each of the current as well as the coming fiscal years. As a result the national debt ceiling was raised from the current $8.2 trillion to $9 trillion. This debt ceiling has gone up by $# trillion under George W Bush and the ceiling will have to be increased again next year and maybe even the year after. When the current administration was ushered into the White House in January 2001 the federal government was projecting budgetary surpluses as far as the eye can see.
As soon as the House passes its own version of the budget, sometime soon, the real horse trading begins. How many more years before the national debt surpasses the GDP?
2 comments:
Well, one of the obvious reasons for why the national debt went up so high in a short period of time is because of our current government. because of the global influences that our country mixes with, the expenses that are made come from the demand that the US cant supply. there is a war that desperately needs funding, oil, and other conflicts that the US tangles itself in. then there are the issues within our boarders, too. unemployment, the hurricane disaster, etc. my belief is that the only way the debt goes down is if there are dramatic and drastic changes with the US issues- the end of the war, the recovery and reconstruction from the hurricane disaster to name a few. also, bush wont be in power for long, but if his party wins again, well then, get ready to start saving. i am positive that the national dept will never be paid off, at least in this generation. and i also feel that the GDP will decrease as the ND increases, God help us.
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