From the Summary: "On February 4, 2008, President Bush sent his fiscal year (FY) 2009 budget to Congress. The President's budget predicted a deficit of $407 billion for FY2008 and $410 billion for FY2009, up from $162 billion in FY2007 due to falling federal revenues and rising security expenditures. The Congressional Budget Office (CBO) estimates the FY2008 deficit would total $396 billion if the President's proposals are enacted, about $39 billion more than the current-law baseline. The projected FY2009 deficit under the President's proposals was $342 billion. Tax rebates and business investment incentives enacted in the Economic Stimulus Act of 2008 (P.L. [Public Law] 110-185), which passed in January, will push up the FY2008 deficit by an estimated $152 billion. The on-budget deficit, which excludes Social Security surpluses, for the President's budget proposals, would reach $592 billion in FY2008 and $525 billion in FY2009 according to CBO estimates. […] The revised baseline projection of the FY2009 deficit was $207 billion, much smaller than the $342 billion FY2009 deficit that the President's budget had been projected to generate. [...] This report will be updated as legislative conditions warrant."
CRS Report for Congress, RL34419