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White House projects $1.47 trillion deficit for current fiscal year

July 23, 2010

WASHINGTON (AP) -- The White House says the government is now borrowing 41 cents of every dollar it spends.

New estimates predict the unemployment rate will average 9 percent next year and the budget deficit will be $1.42 trillion -- even bigger than previously expected.

That's because tax revenues are still slumping and the economic recovery is going slower than hoped.

The deficit for the current fiscal year is forecast to hit a record $1.47 trillion, about the same as the administration predicted in February.

President Barack Obama and Democrats controlling Congress are mostly taking a pass on deficit reduction this year as they try to spark job growth and await recommendations from Obama's deficit commission.

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