The White House said on Monday that the current fiscal year, the federal budget deficit will shrink to 759 billion dollars. This is more than $ 200 billion, lower than the government forecast just three months ago.
The new figures reflect the economic improvement of the additional revenue generated and consider automatic, full board, the White House wants to avoid spending cuts.
The White House expects the economy will grow in the coming years will be slightly slower than forecast in April. The report said that automatic spending cuts kick in March this year, economic growth will slow down from the 2.6% growth forecast of 2.4% growth in the fourth quarter of this year.
But the White House to see a slightly optimistic employment prospects. It expects the unemployment rate will average 7 percent next year, up 6.8% in the last quarter of 2014. Than the average forecast in April 2014 to 7.2% unemployment rate, which is a step forward.
President Obama's deficit will not exceed $ 1 trillion 2013 budget year ended Sept. 30 will be the first one. Obama inherited a struggling economy and record deficits. 2011 Republican deficit reduction plan with some tax increases to reduce the deficit, also enacted earlier this year in the upper bracket earners.
But has remained at odds with Obama's Republican cuts to welfare programs, and further tax increases. Improving deficit picture seems to have taken away some additional deficit reduction bargain momentum, but the problem may be re-added to this fall, when Obama and Congress need to develop a country's borrowings increased by $ 16.7 trillion borrowing limit in order to avoid economic rattling default circumstances, the government's obligations.
Last year, the deficit registered $ 1.1 trillion. The White House earlier this year predicted that 2013 will be a deficit of 973 billion dollars. The Congressional Budget Office has a more optimistic $ $ 67 billion deficit forecast in 2013, it would not be unusual for the CBO data is more accurate.
The percentage of new deficit economy, what is it, Obama entered office half the size. At the time, he vowed, the end of his first term, promised a longer time to fulfill deficit reduction by half.
The White House forecast improvement seen this year is slightly higher deficit in the coming years than it was in April, slightly more pessimistic forecast of economic growth, mainly because during this period will generate billions of dollars in tax revenue 384 less.
In the coming 10 years, the White House is expected to reach $ 58 trillion cumulative deficit in the April forecast ○ 一 四年 至 2023 total $ 5.3 trillion deficit in.
White House budget director Silvia Matthew Bloomsbury Vail said that this year's deficit is less than half the deficit recorded posted four years ago, when measured by economies of scale. Relative to 10.1% of GDP in 2009, the 2013 deficit would be equivalent to 4.7 percent of gross domestic product (GDP).
The report plays Obama's long-term proposal to increase taxes on high-income groups, to curb pay for health insurance providers, oil companies and other businesses close tax breaks enjoyed by special interests. It will also impose a less generous social security recipients cost of living adjustment proposal, which was opposed by a number of Democrats. But it bypasses the controversial cuts to Medicare and Medicaid health programs for the poor and disabled, leaving Obama's signature health care law unchanged.
"We do not need to make significant investments necessary to help our economic growth and support of middle-class families, and continue to reduce the deficit in a balanced way to choose between, Burwell said."
Republican Senator Jeff Sessions of the Senate Budget Committee, criticized the report predicts that spending more than 10 years will increase by more than 60% from current levels. "Ominously, the president did not offer serious proposals to strengthen and maintain our unsustainable health insurance and social security schemes," he said in a statement.
White House budget writers say the fall in unemployment - two months has remained at 7.6% - has been faster than expected, when they completed an initial forecast for this year.
"Now the unemployment rate is expected to decline more rapidly than the budget forecast," the report said.
White House economic forecast is higher than the CBO's Blue Chip Economic Indicators poll's top business economists predicted more optimistic. But it is not too optimistic than the Fed's forecast. For example, although the White House that the annual average unemployment rate in 2015 was 6.5%, the U.S. Congressional Budget Office forecast 7.1 percent tax rate. On the other hand, the Fed predicted in 2015 the average unemployment rate was 5.8% and 6.2%, respectively.
The White House, the unemployment rate will reach 5.4% in 2018, one year ahead in its budget anticipated project. But the unemployment rate is expected to stabilize at this level over the next six years. This is still higher than the state in 2006 and 2007, the average unemployment rate of 4.6%.
The report also reflects the government-affiliated mortgage lenders Fannie Mae (Fannie Mae) and Freddie (Freddie Mac) Dividends paid by the Treasury received 66.3 billion dollars. Government bailout of Fannie Mae and Freddie Mac in 2008 after the financial crisis, high-risk mortgage loans recorded huge losses. Received the company's two biggest crisis bailout.
Recently amounts reflect the property market recovery, has made two mortgage giants once again profitable. So far, Fannie Mae has repaid $ 9.5 billion to about $ 116 received one billion dollars, while Freddie Mac has repaid approximately $ 3.7 billion, and its 71.3 billion dollars.
 



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