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The briefing warns that the government is "unlikely to bring deficit reduction entirely back on track" and that the "continuing run of disappointing data" meant there was a "severe worsening in the public finances".
An internal briefing document for ministers, marked "sensitive", revealed that the government was "unlikely to bring deficit reduction entirely back on track" and that the "continuing run of disappointing data" meant there was a "severe worsening in the public finances".
The draft conclusions say the budget must act as a catalyst for growth but then add: "As fiscal discipline is reinforced in Europe, it is essential that the future multiannual financial framework [the seven-year budget] reflects the consolidation efforts being made by member states to bring deficit and debt onto a more sustainable path.
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Athens -- followed this week by Dublin -- had to introduce radical cuts and savings to bring deficits under control.
It would bring deficits down to near 2 percent of economic output, a level many economists consider safe in the long term.
Instead, King's comments suggest a government of any party would be forced to tighten the purse strings to bring deficits under control.
Increasingly, even supporters are saying Mr. Obama cannot keep both his promise to bring deficits under control and his vow not to raise taxes on anyone making less than $250,000.
New orders, and new export orders, continued to fall, however.In the absence of growth, it will be very difficult for peripheral countries to bring deficits down and stabilise debt levels.
While we need to bring deficits down over the long term, for the next few years we need more stimulus, not less.
He has done the first of these in spades, adding more stimulus this year and next and bringing deficits to 10.6% and 8.3%, respectively.
A $75 billion shortfall would bring the deficit to $121 billion.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com