US Growth to Hit 32 in 2014 Says Obama Budget

US Growth to Hit 3.2% in 2014 Says Obama Budget

The budget for the fiscal year beginning October 1 foresees the  deficit falling to $744 billion, compared to a projected shortfall of $973 billion in the current year.

WASHINGTON -- President Barack Obama's fiscal 2014 budget released Wednesday sees  economic growth picking up to 3.2% next year from 2.3% this year.

The $3.77 trillion proposed budget also assumes that unemployment will average 7.2% next year, down from the current 7.6%.

The budget for the fiscal year beginning October 1 foresees the  deficit falling to $744 billion, compared to a projected shortfall of $973 billion in the current year.

That would bring the country's deficit down to 4.4% of gross domestic product from 6% this year.

Government spending was projected to rise just 2.5% in 2014 -- slightly more than the projected inflation rate of 2.2% -- as pressure remains on the White House to curtail spending.

Nevertheless, Republicans in Congress are expected to reject the proposal and push for more cuts in disbursements.

"We don't view this budget as a starting point. This is an offer where the president came more than half way towards the Republicans in an attempt to get a fiscal deal," said a senior White House official.

Copyright Agence France-Presse, 2013

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