The White House will miss a July 15 deadline to release a new budget report expected to show improvement in the deficit ahead of next month’s Republican political convention, officials said on Friday.
Administration officials denied the delay was politically motivated to give the White House budget office more time to incorporate better-than-expected tax revenue figures into their forecasts. They said they would release the new budget projections as soon as they are completed.
Release of the report could provide Bush with a political boost at the Republican convention, which opens Aug. 30, by allowing him to cite progress reining in record budget deficits.
Officials said the report is expected to show a smaller deficit this year than the White House initially forecast, despite extra Iraq war spending. They said the report will also show Bush is on track to cut the deficit in half over the next five years.
Officials said the White House Office of Management and Budget sought the extra time to update their budget forecasts in light of improving economic conditions.
“The fact is we’re looking at all the numbers in this to make sure the report is as accurate as possible,” an official said. “We’re going to complete it as quickly as we can.”
When he unveiled his fiscal 2005 budget blueprint in February, Bush set the goal of bringing this year’s record $521 billion shortfall down to $364 billion in fiscal 2005, to $241 billion in 2007 and then to $237 billion in 2009.
The budget shortfall hit a record $374 billion last year due to a weak economy, higher spending for defense and domestic security and tax cuts won by Bush totaling $1.7 trillion over 10 years. The federal government remains on track for a record annual deficit in fiscal 2004, which ends Sept. 30.
More tax revenue
While the budget gap has been a political vulnerability for the Bush administration, White House officials say the situation is improving.
In recent months, they say, more taxes have been collected than expected, helping offset new spending in Iraq and Afghanistan.
In May, Bush asked the U.S. Congress for an additional $25 billion to fund military operations in Iraq and Afghanistan, breaking a pledge not to seek more money before the November election.
The new money would come on top of $160 billion in Bush’s two previous spending bills for Iraq and Afghanistan, and officials said far more money would be needed next year.
“The economy has improved substantially,” an official said. “There will be an improvement (in the deficit picture.)”
The White House points out that while a record in dollar terms, a more than $500 billion shortfall would still be less than levels seen in the early 1980s when viewed as a percentage of the size of the U.S. economy.
White House officials defended the delay in issuing the budget report, saying the July 15 deadline has been missed 15 times in the last 25 years, by Republican and Democrat administrations alike.
