Budget projects deficit will quadruple, jump to $1.75 trillion

Federal deficits would remain above $500 billion annually for the next decade under the budget proposed by President Obama Thursday, sending the federal debt soaring to $23 trillion by 2019. The deficit this year would jump to a record $1.75 trillion, nearly quadrupling the 2008 figure. Obama has added a $250 billion reserve fund to support up to $750 billion in additional asset purchases from banks and other financial institutions. That would more than double the current $700 billion effort. The Democratic president’s first budget, which will be fleshed out during the next two months, differs dramatically from those of his Republican predecessor. The most dramatic change: inclusion of a $634 billion reserve fund to jump-start an overhaul of the nation’s health care system, to be financed equally by savings in Medicare and tax increases on those earning more than $250,000 a year...USA Today