The federal government will post an $845 billion deficit this year, the first time in five years that the shortfall has dipped below $1 trillion, though the long-term budget outlook remains grim, according to the Congressional Budget Office.
In the first comprehensive analysis of the government’s finances since last month’s fiscal-cliff deal, the nonpartisan agency said a surge of tax revenues will help cut the deficit to its lowest since 2008. Next year’s shortfall will total $616 billion, according to the CBO.
PresidentBarack Obamais expected to submit his fiscal 2014 budget request to Congress in mid-March, according to a budget official who requested anonymity to discuss the administration’s plans in advance of a formal announcement. House Budget Committee Chairman Paul Ryan, a