Treasury Secretary admits Obama’s budget will bust the bank

February 18, 2011 05:18

Treasury Secretary Timothy Geithner said the budget proposed by President Barack Obama could leave America with “unsustainable obligations over time.”

By Fred Lucas at


Geithner testified to the Senate Budget Committee on Thursday about the budget, attempting to defend the president’s fiscal year 2012 budget proposal.

Under the proposal, the budget deficit – projected to be at $1.6 trillion for fiscal year 2011, will fall to $607 billion by 2015 under the White House projections. However, the deficit increases each year after that, going to $774 billion by fiscal year 2021. Further, the national debt would nearly double to $26.3 trillion by fiscal year 2021 under the president’s budget projections.

During the Senate Budget Committee hearing, Sen. Jeff Sessions (R-Ala.) asked the Treasury secretary, “Under your budget, the interest increases each year. It was $187 billion in 2009. Under your proposal, it increases to $844 billion”

Geithner responded, “Senator, absolutely, it is an excessively high interest burden, it’s unsustainable.”

Sessions said, “Well it’s your plan. That’s the plan the president submitted.”

At that point, Geithner partially agreed with the ranking member.

“You’re absolutely right that with the president’s plan, even if Congress were to enact it, and even if Congress were to hold to it and reduce those deficits to three percent of GDP over the next five years, we would still be left with a very large interest burden and unsustainable obligations over time,” Geithner said.


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