The slowing U.S. economy is leading to higher budget deficits for this year and next year as President George W. Bush will acknowledge when he presents his 2009 fiscal spending plan which amounts to $3 Trillion. The fiscal spending plan aims to boost military funding while freezing many of his domestic programs.

President Bush is expected to project approximately $400 Billion in budget deficit for the years 2008 and 2009. This amount is twice the $163 Billion shortfall which was recorded in 2007. The budget deficit will be inherited by the incoming U.S. president who will assume office in 2009.