President Barack Obama has prepared a taskforce to deal with the growing US budget deficit. The task force body will summarize on what steps should be taken to attain the deficit down to 3% of GDP. This 2010 year’s deficit is supposed to increase to 10.6% of GDP. Last year it attained 9.9%, the highest rate from World War II.
The US budget deficit for the year cessation 30 September 2009 was $1.415 trillion (£907bn). It is suspected to hit a record $1.56 trillion in 2010. President Obama has organized the bi-supporter taskforce after plans for a congressionally-accepted body were frequently poosed by Republicans in the Senate. A congressionally-appointed commission can have high power to necessiate lawmakers to vote on its approvals.
The huge size of the deficit is due to the impact of a extreme recession, which has decreased government tax receipts, and raised spending on programmes like unemployment insurance and food stamps. Government finances were also influenced by the billions of dollars forced into the economy in 2008 to support the banking system.