WASHINGTON (Reuters) - Projected U.S. budget deficits are too high and could force up interest rates and crowd out investment unless the country takes action, the head of the White House budget office said on Tuesday.

"The deficit for last fiscal year was $1.4 trillion, or 10 percent of our economy," Office of Management and Budget Director Peter Orszag said in remarks prepared for delivery at New York University.

"Next year's deficit is expected to be about the same size, and current projections show $9 trillion in deficits over the next 10 years, averaging about 5 percent of GDP. Deficits of this size are serious - and ultimately unsustainable," he said.

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