The US administration on Monday blamed the slowdown in the economy for a ­projected increase of the budget deficit to a near-record level of $410bn this year, or 2.9 per cent of gross domestic product.

The expected jump in the deficit was announced as George W. Bush sent to Congress a $3,100bn (€2,091bn, £1,569bn) federal budget for 2009 – the last and largest of his eight-year presidency – claiming that it “protects America and encourages economic growth”.