Washington, DC - The US response to the terrorist attacks and the havoc wreaked on the economy would slash the budget surplus by at least $100 billion next year, economists said this week.
The surplus - estimated by the congressional budget office at $176 billion for the 2002 fiscal year starting on October 1 - could even be wiped out entirely, they said.
But no one argued that the surplus should be protected.
Instead, analysts said, governments sought budget surpluses precisely for such shocks. In the US case, it would have to fund the cost of economic stimulus and a war against terrorism.
"Obviously the big surpluses that we were planning are going to be gone, so you can kiss them goodbye,"
said Delos Smith, a senior business analyst at the Conference Board.