2005 Deficit Actually $760 Billion

CongressDaily reported today, "A little-noticed Treasury Department report sent to congressional leaders in December paints a bleaker picture of the nation's finances than is widely accepted and is beginning to attract attention as lawmakers prepare for election-year budget battles." The report puts the fiscal year 2005 deficit at $760 billion by "using generally accepted accounting principles that private businesses must use to present their finances." The larger figure contrasts strongly with the $319 billion figure typically cited. According to the report, standard deficit calculations give "a potentially unrealistic and misleading picture of the federal government’s overall performance, financial condition, and future fiscal outlook." Rep. Jim Cooper (D-TN) complained that Congress was not sufficiently notified about the report. "We got more notification on the NSA domestic surveillance thing," Cooper said.