"We rely heavily on the federal government"
- Walter Tejada, chairman of the board of Virginia's Arlington County
The fact that the U.S. government will announce more budget cuts and the prospect for messy political fights over fiscal policy are expected to weigh on the economic growth this year, the National Association for Business Economics said Monday. The world's largest economy is expected to grow by 2.4% in 2013. On March 1, $85 billion in automatic spending cuts will take place as scheduled, while on May 19, a separate legislation expires, which will then allow the government to increase its debt to pay the bills. The report also showed that tightening of the fiscal policy would lead to a $900 billion budget deficit this year and $761 billion in 2014, down from previous year's $1.09 trillion.
"They're worried about it, waiting to see what happens," said Douglas Thomas, who shines shoes in the Ronald Reagan Building that houses government and private sector offices a few blocks from the White House. "Anytime something affects the government, with me being in this building, it hurts my business. But I've got to go with the flow."
"We rely heavily on the federal government," said Walter Tejada, chairman of the board of Virginia's Arlington County just across the Potomac River from Washington.
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