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White House says economy movement key to deficit

Mon May 11, 2009 11:05pm IST
 
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WASHINGTON, May 11 (Reuters) - The Obama administration cannot start dealing with the short-term challenges presented by the deficit until it gets the economy moving, White House spokesman Robert Gibbs said on Monday.

"Unless we get our economy moving again we're going to have a very hard time dealing with the economic downturn that exacerbates the deficit," Gibbs said after the White House pushed up its forecast for the U.S. budget deficit for this year by $89 billion to $1.84 trillion.

"The change in some of the figures today versus a few months ago are a direct result of a downturn in the economy and the tax receipts that it does or does not produce," he said. "Unless or until we get our economy moving again it's going to be hard to deal with these short term challenges that the deficit presents." (Reporting by Deborah Charles; Editing by Bill Trott)

People light candles at a vigil to commemorate the victims of last year's militant attacks in Mumbai, in front of the India Gate in New Delhi November 26, 2009. Mumbai held tearful memorials and police staged a show of strength on Thursday as India's financial hub marked the first anniversary of militant raids that killed 166 people and pushed up tensions with Pakistan. REUTERS/Rupak De Chowdhuri
One Year Later

Mumbai held tearful memorials and police staged a show of strength as it marked the first anniversary of militant raids that killed 166 people and pushed up tensions with Pakistan.  Slideshow | Full Coverage