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27 September 2001 09:54  US budget surplus may shrink in 2002, deficit not excluded - source


WASHINGTON (AFX) - The US budget surplus may shrink by 130 bln usd to 44 bln usd in fiscal 2002 and a deficit is not excluded, a congressional source said yesterday. The reduction of the surplus, which reached 174 bln usd before the terrorist attacks of September 11, would be the result of a significant economic slowdown as well as emergency assistance programs totaling 60 bln usd adopted in the wake of the attacks, the source said. "We are not in a good position to make good estimate now," said the source, adding, "It's reasonable to expect a deficit in 2002." The Congressional Budget Office was expected to release a report showing a drop in the 2001 budget surplus of between 30 and 40 bln usd, according to the source. Fiscal 2002 begins on October 1.
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