US deficit 'set to hit $1.35tn'

Image by DavidDMuir via Flickr

The US budget deficit is expected to reach $1.35 trillion (£837bn) in 2010, according to US Congress estimates.

The Congressional Budget Office (CBO)had previously estimated that the deficit would hit $1.38tn but has revised down its forecast.

In 2009, the US deficit hit a record $1.4tn - equal to 9.9% of gross domestic product (GDP) - and the highest since the end of World War II.

President Obama will submit his budget plan on 1 February.