US budget deficit to widen towards $400bn this year

03/27/06 - Dresdner Kleinwort Wasser.

NEW YORK, March 27 (newratings.com) – Analysts at Dresdner Kleinwort Wasserstein expect the US budget deficit to widen back towards $400 billion this year and rise further over the following years.

In a research note published this morning, the analysts mention that the $100 billion decline in the US budget deficit last year appears to be a onetime event. Although the US government expects the budget deficit to decline towards the $200 billion mark by 2009, the Congress is unlikely to approve President Bush's budget cut plans, the analysts say. The US budget deficit is likely to rise going forward, since the Congress continues to approve supplemental appropriations for budget operations, Dresdner Kleinwort Wasserstein adds.