WASHINGTON (Reuters) - The Bush administration on Monday plans to project the U.S. budget deficit will soar to a new record of nearly half a trillion dollars in fiscal 2009 as the economic outlook darkens and Americans elect a new president.The forecast will pose challenges to the next president who will take over in January, either Republican Sen. John McCain of Arizona or Democratic Sen. Barack Obama of Illinois, and likely further complicate efforts to balance the budget.
The White House is expected to boost its 2009 deficit forecast to about $482 billion in the fiscal year starting October 1, 2008 while cutting the fiscal 2008 deficit projection to $389 billion, a source familiar with the report told Reuters.
U.S. President George W. Bush in February forecast the deficit would be $407 billion in 2009 and $410 billion in 2008. Still, the new report to be released on Monday projects a budget surplus of $60 billion in 2012, the source said.
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