Iraq War Upsets US Finances

World | August 26, 2003, Tuesday // 00:00

The United States will be in the red by almost half a trillion dollars 2004 thanks largely to the spiralling cost of involvement in Iraq, US government report said Tuesday. In its twice-yearly Budget Outlook the Congressional Budget Office (CBO) says the US will run up a deficit of USD 480 B in 2004, compared to USD 401 B deficit this year. The figures are markedly worse than the CBO predicted in March, when the 2003 number was seen at USD 246 B. However, the White House insists that its massive tax cuts will underpin a recovery.

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