Finally some good news on the government’s budget. According to news reports, the White House is set to announce that this year’s deficit will “only” be $1.58 trillion which is about $262 billion less than the previous estimate. Still, these numbers are staggering.
The deficit will amount to 11.2 percent of the nation’s gross domestic product, with spending totaling $3.653 trillion and revenues amounting to $2.074 trillion, the official said. In May, the administration had pegged this year’s deficit at $1.84 trillion. The estimate is for the fiscal year ending Sept. 30.
The administration is slated to release its review on Aug. 25, with the nonpartisan Congressional Budget Office issuing its revised budget estimate that same day. The CBO estimated in June that this year’s shortfall would total $1.825 trillion.
If this report is accurate, then it’s a big deal for the Obama administration. Previously, most folks thought they delayed the semi-annual report because the deficit was going up. Now we have to watch the dollar’s reaction.