Number: RL34419
Title: The Budget for Fiscal Year 2009
Authors: D. Andrew Austin, Government and Finance Division 
Abstract: On February 4, 2008, President Bush sent his fiscal year (FY) 2009 budget to Congress. The President's budget predicted a deficit of $407 billion for FY2008 and $410 billion for FY2009, up from $162 billion in FY2007. The Congressional Budget Office (CBO) estimated the FY2008 deficit would total $396 billion if the President's proposals were enacted, about $39 billion more than the current-law baseline. CBO projected that the President's proposals would generate a FY2009 deficit of $342 billion. Tax rebates and business investment incentives enacted in the Economic Stimulus Act of 2008 (P.L. 110-185), which passed in January, will push up the FY2008 deficit by an estimated $152 billion. CBO estimated the on-budget deficit, which excludes Social Security surpluses, for the President's budget proposals would reach $592 billion in FY2008 and $525 billion in FY2009. Budget and economic estimates issued later in 2008 have been less optimistic.
Pages: 31
Date: September 11, 2008