According the Treasury’s Monthly Statement, released yesterday, the federal budget deficit for the first five months of fiscal 2009 has climbed to $765 billion. Part of that is a $193 billion shortfall in February, but most of that is the result of the government’s binge spending. The cumulative deficit is $500 billion more than the total for the comparable period last year.
Obviously, at the end of the year it will get worse. The Obama administration’s budget, called “A New Era of Responsibility, Renewing America’s Promise,” estimates the deficit for this year will total $1.75 trillion. But things will get better, right? Well, according to Obama’s own ten-year deficit projections (see chart), a New Era of Responsibility produces bigger deficits every single year than during the Bush years: $1.75 trillion in 2009 to $533 billion by 2013 — this budget projects higher deficits in 2014 ($570 billion), 2015 ($583 billion), and 2016 ($637 billion). In 2019, the final year in the budget, the deficit is projected to be $712 billion.
— Veronique de Rugy is an economist at the Mercatus Center at George Mason University.