The White House on Monday projected 2009 and 2010 federal budget deficits far higher than it forecast just two and a half months ago, even as it continued to defy most experts and predict that the economy is headed for a strong comeback starting late this year.

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The new administration budget said that the fiscal 2009 deficit would reach $1.84 trillion, or $89 billion more than forecast in February, while the 2010 figure now is estimated at $1.26 trillion, or $87 billion above the previous number. The fiscal 2008 deficit was $459 billion.

The new figures dwarf the $17 billion in budget reductions and program terminations that President Barack Obama proposed with a flourish last week, reductions that Congress is unlikely to approve in full.

via Deficits soar even with rosy Obama budget assumptions | McClatchy.