By Derek Wallbank Apr 14, 2014 2:48 PM CT
The 2014 deficit will be 2.8 percent of the economy, according to the Congressional... Read More
White House Press Briefing: Health Law, Ukraine
The U.S. government’s deficit will fall to $492 billion this year, according to the Congressional Budget Office, a steeper drop than originally predicted from $680 billion in fiscal year 2013.
The 2014 deficit will be 2.8 percent of the economy, according to CBO, almost 32 percent below fiscal year 2013, when it was 4.1 percent. The deficit will shrink again in fiscal 2015 to $469 billion, before rising to about $1 trillion in fiscal years 2022 to 2024, CBO said.
“This will be the fifth consecutive year in which the deficit has declined as a share of GDP since peaking at 9.8 percent in 2009,” CBO said in a report released today. The 2.8 figure as a percentage of gross domestic product is lower than the 3.1 percent average of the last 40 years, CBO said.
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President Barack Obama has often pointed to the declining deficit in making the case for his economic program, including greater spending on infrastructure and other items. Republicans have called for deeper cuts to balance the budget.
CBO revised its projection from $514 billion in February, “mostly because the agency now anticipates lower outlays for discretionary programs and net interest payments,” the office said. The 20-page report is an update of CBO’s 10-year baseline projections released in February.
White House spokesman Jay Carney noted the report and a separate one CBO released showing that the 2010 health care law will cost $104 billion less than expected over the next decade. That law, Carney said, is “making historic progress in slowing health care cost growth and improving our nation’s fiscal outlook by lowering deficits.”