Deficit to dip below $600 billion for first time since recession, White House predicts

In the longer term, though, bigger shortfalls are expected

By Lori Montgomery July 11 at 4:04 PM, WashPost

The White House said Friday that the federal budget deficit will fall to $583 billion this year, the smallest deficit of President Obama’s tenure and the first to dip below $600 billion since the Great Recession took hold in 2008.

In its midyear review of the nation’s finances, the White House predicted that the deficit for the fiscal year that ends in September will be about $66 billion lower than the administration forecast in February.

The improvement is driven primarily by sluggish rates of spending at the Pentagon and other federal agencies, particularly on recovery efforts for Hurricane Sandy. The administration also expects to spend less this year than previously forecast on health insurance subsidies for low-income families under the Affordable Care Act. The price of those subsidies is now predicted to be slightly higher, however, over the coming decade.

(More here.)