Posted On 05 Mar 2014
According to the 2015 draft budget of President Barack Obama, the United States deficit will drop to a 3.7% of the gross domestic product (GDP) in 2014 and a 3.1% in 2015, while the economy will grow a 3.1 % this year and a 3.4 % next year.
On the other hand, inflation should go from 1.6% to a 2% in 2015 and the unemployment rate would fall to 6.4% in 2015. The Government’s proposal says that the budget deficit, which had expanded after the crisis of 2008, can be brought quickly to more comfortable levels and fall to 564.000 billion dollars, or 3.1% of GDP in the fiscal year that starts October 1.
However, Obama believes that the project will be blocked in Congress, since it includes increases in certain taxes and increase of expenses which the Republican opposition has rejected.
The budget for the fiscal year that begins in October is projected at 3.9 billion dollars, with a modest increase of 6.8% over the past year.