White House foresees steady growth, falling deficit
Published on Mar 5, 2014 1:02 AM
WASHINGTON (AFP) - The White House projected a steady fall in the US deficit over the next decade while the economy grows moderately, as it released its budget for the 2015 fiscal year on Tuesday.
The budget foresees the American economy growing by 3.1 per cent this year and by 3.4 per cent the next, with inflation remaining under control, rising to only 2.0 per cent in 2015.
"Building on the progress already made, the budget's deficit reduction measures are more than enough to achieve the key fiscal goal of stabilising the debt as a share of GDP," the document said.
The budget projects steady progress in building income, so that the government can reach a primary surplus - spending excluding debt service - by 2018.
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