CBO projects $1.5 trillion deficit for 2010 in Obama budget

The federal deficit would hit $1.5 trillion in 2010 under President Barack Obama's proposals, the Congressional Budget Office (CBO) projected Friday.

The nonpartisan budget office said it projected a deficit measuring 10.3 percent of gross domestic product (GDP) this year, and a $1.3 trillion deficit in 2011 that would  measure 8.9 percent of next year's GDP.

The CBO's projections are based on a preliminary analysis of Obama's budget versus the budget office's baseline projections, which "assume that current laws and policies that affect federal spending and revenues remain unchanged."

Still, the projected deficits this year are less than what the Obama administration had expected in its estimate, CBO Director Douglas Elmendorf said.

"For 2010, CBO’s estimate of the deficit under the President’s budget is $56 billion less than the Administration’s figure, largely because of differences in baseline estimates of spending," he wrote on his blog.

The CBO will release a fuller estimate later in March.

Read Elmendorf's full blog here.