White House hikes deficit estimate by $2 trillion

The White House is likely to dramatically increase its projected 10-year budget deficit estimate next week by nearly $2 trillion, senior administration officials said Friday.

Obama administration officials have concluded the economy was much worse last year — and tax revenues much lower — than they had initially assumed, which means that the estimated budget deficit will increase from $7 trillion to about $9 trillion over the coming decade.

The planned revision was first reported by Reuters, and White House officials confirmed that account for POLITICO.

There’s no doubt the revision will be interpreted as bad news for an administration whose deficit spending has emerged as a political Achilles’ heel.

Already, Republicans have been gaining political traction by accusing Obama of budget-busting spending.