(WASHINGTON) — Due to a stronger economy, less spending and a higher tax rate for the rich, the White House’s Office of Management and Budget predicted on Monday that the annual budget deficit will shrink to $759 billion by Sept. 30, the end of fiscal 2013.
Three months ago, the administration estimated a deficit $200 billion higher than the new projection. If things continue at the current pace, the Congressional Budget Office has suggested the shortfall could drop to as low as $642 billion.
This certainly is better news for President Obama, considering the government has run a deficit of more than $1 trillion every year since he’s taken office.
Of course, the sequester — those deep automatic spending cuts that kicked in during the spring — is making life more difficult, according to the White House.
Without the across-the board spending reductions, total economic growth for the year would be 2.6 percent, according to administration analysts. If the cuts persist, however, growth will be closer to 2.4 percent.
Copyright 2013 ABC News Radio
Scott Zamost and Drew Griffin, CNN Newswire
Ahiza Garcia, CNN