On Monday, Obama is slated to release his annual budget proposal for FY 2013, along with a 10-year budget (2012-2021) outlook. One would think that after talking incessantly about cutting spending, Obama would spend less money next year than this year. Yet, in Obama’s world, a spending cut means spending less than you were slated to spend, even though it is still higher in nominal terms. The Wall Street Journal has already obtained the outline of his budget:
President Barack Obama’s budget request to Congress on Monday will forecast a deficit of $1.33 trillion in fiscal year 2012 and will include hundreds of billions of dollars of proposed infrastructure spending, according to draft documents viewed by Dow Jones Newswires and The Wall Street Journal.
The projected deficit is higher than the $1.296 trillion deficit in 2011 and also slightly higher than a roughly $1.15 trillion projection released by the Congressional Budget Office last week.
Hence, even though revenues are projected to go up by $220 billion this year, the deficit will still tick up another $37 billion. Using CBO’s baseline, that would mean spending will rise $257 billion this year under Obama. And that’s during an election year. You can imagine what he would pull out of the hat if he wins a second term.


Aaron Gardner
Steve Maley
KnightsofMalta