CBO reduces projection for this year's budget deficit

|By:, SA News Editor

The Congressional Budget Office has cut its forecast for the budget deficit in the fiscal year through September 30, saying it will be $514B vs a previous prediction of $560B and $680B in FY 2013.

The CBO cited the improving economy, spending cuts and higher tax receipts for the new projection.

The deficit will drop to $478B in FY 2015, although that's $100B more than previously projected, while the CBO expects the budget gap to grow after that due to a slow drop in unemployment, the aging population, increased healthcare spending and rising interest costs on debt.

CBO report