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The European Commission says governments should lay out plans later this year to explain how they plan to limit the spending shortfall and start paying off debt.
If these policies are allowed to expire at the end of this year, which is what some Republicans have been calling for, American businesses in 2012 will face a spending shortfall of roughly two hundred and fifty billion dollars.
The effect on GDP growth would be smaller, bringing it down by about half that amount over the next year, since much of the spending shortfall would leak out into imports.
Later the same day, Brown also said that the announcement had not been a pre-election stunt. in December 2009, the Institute for Fiscal Studies IFSS) estimated that there would be a public spending shortfall of £36 billion in the three years from 2011with £15 billion of the cuts needed yet to be identified.
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But it will be difficult to avoid one if spending shortfalls continue.
We've had the Joint Chiefs up here [seeking additional funds] to cover spending shortfalls in just operations, maintenance, readiness and personnel issues -- let alone paying for national missile defense and new programs".
Ecuador can no longer print money to cover spending shortfalls; it has annual debt-service requirements of around $2 billion, or more than one-third of the budget; it has no access to international capital markets, and on top of that the oil price is static.
Mr Hogg said he hoped to provide strong leadership to the force which is expected to go from 3,500 officers to 2,800 by 2015 due to spending shortfalls.
This problem is exacerbated by highway spending shortfalls due to insufficient state "gas tax" revenues which constitute a major component of highway funding sources especially in states like Texas.
Devon and Cornwall Police has an annual budget of about £255m and, as a result of spending shortfalls, is due to see its number of officers drop from 3,500 in March 2010 to about 2,800 by March 2015.
When you add it all up, it's right in the ballpark of the state's spending shortfalls.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com