US budget deficit threatens recovery, say IMF and OECD

WASHINGTON: The US government's budget deficit came under fire on Wednesday from two global institutions saying a plan to halve the record gap by 2009 may not be enough to stop long-term damage to the world economy. 

The International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD) said in separate reports on the US economy that there was concern that the positive impact of the deficit in leading a global recovery could not last.