BUDGET DEFICIT $50 BILLION HIGHER THAN ESTIMATED
WASHINGTON — The 1991 United States budget deficit is likely to be $50 billion more than previously estimated because the recession will cut tax revenues, the Washington Post reported Tuesday. The Post said Bush administration figures now put the budget deficit for the fiscal year that began Oct. 1 at between $300 billion to $325 billion.
The deficit for the $1.2 trillion budget had been estimated as at least $250 billion, counting the cost of the savings and loan bailout. That estimate did not include the estimated $30 billion for the US military deployment in the Persian Gulf or costs due to a domestic recession, such as welfare programs and unemployment benefits.
The final budget plan approved last October calls for $493 billion in deficit cuts over five years through higher taxes and spending cuts.
New deficit estimates are to be announced Feb. 4 when President Bush sends his budget proposals for the 1992 fiscal year beginning this Oct. 1 to Congress, the newspaper said.