Obama expects budget deficit to approach $1tr 

(MENAFN - Saudi Press Agency) President-elect Barack Obama said Tuesday he expects to inherit a U.S. federal budget deficit nearing $1 trillion and that his administration would have to make difficult budget choices.

After meeting with his economic advisors in Washington, Obama said it was possible that the next few years could see trillion-dollar deficits, but that his administration wants to create a "sense of responsibility" about future budget choices.

The president-elect said his selection to be the new White House budget director, Peter Orszag, was forecasting that the budget deficit would likely approach $1 trillion "before we've even started" and that more deficits could be coming in future years.

"The reason I raise this is because we're gong to have to stop talking about budget reform" and realize it is "an absolute necessity," Obama said.

Obama, who takes office January 20, wants quick action from Congress on stimulus spending and tax-cut measures that would total almost $800 billion over two years.

Many Democrats also want to move quickly on economic stimulus legislation, but Republicans are insisting that the package receive careful scrutiny to avoid wasteful spending. Any stimulus plan would add to already surging budget deficits.

Obama's comments on the U.S. fiscal outlook came one day before the Congressional Budget Office (CBO) plans to announce its latest estimates on the budget deficit.