January 6, 2009 Obama: Close to trillion-dollar budget deficit Play video

(NECN: Washington) - President-elect Barack Obama says the nation probably faces huge deficits for years to come, but heavy spending is needed now to jump start the economy.

After meeting with his economic team today, Obama said the deficit appears on track to hit $1 trillion soon.

"We're going to have to make tough choices and eliminate old habits," said Obama.

The president-elect wants Congress to approve a stimulus plan of about $775 billion.

"We are going to stop talking about government reform and actually execute it," said Obama.

The federal deficit was about $455 billion when the last fiscal year ended on September 30, 2008.