White House: 2014 deficit to drop $100B - KAUZ-TV: Newschannel 6 Now | Wichita Falls, TX

White House: 2014 deficit to drop $100B

Posted: Updated:
  • NationalMore>>

  • Varying health premium subsidies worry consumers

    Varying health premium subsidies worry consumers

    Thursday, July 24 2014 1:46 PM EDT2014-07-24 17:46:50 GMT
    Linda Close was grateful to learn she qualified for a sizable subsidy to help pay for her health insurance under the new federal law. But in the process of signing up for a plan, Close said her HealthCare.gov...
    Linda Close was grateful to learn she qualified for a sizable subsidy to help pay for her health insurance under the new federal law. But in the process of signing up for a plan, Close said her HealthCare.gov account...
  • Gang violence, fears for children fuel rush to US

    Gang violence, fears for children fuel rush to US

    Thursday, July 24 2014 1:43 PM EDT2014-07-24 17:43:05 GMT
    Many immigrants flooding across the southern border of the U.S. say they're fleeing violent gangs in Central America.
    Many immigrants flooding across the southern border of the U.S. say they're fleeing violent gangs in Central America.
  • Alaska tourist train halts runs after derailment

    Alaska tourist train halts runs after derailment

    Thursday, July 24 2014 1:42 PM EDT2014-07-24 17:42:53 GMT
    A vintage rail company that hauls hundreds of thousands of tourists every year along the route of the historic Klondike Gold Rush has suspended operations while it investigates a derailment that injured nine people.
    Officials now say 19 people were seen for minor injuries when a tourist train derailed in southeast Alaska - an increase from the initial report of nine injuries.
By ANDREW TAYLOR
Associated Press

WASHINGTON (AP) - The government's budget deficit will drop to $583 billion this year, the lowest level of President Barack Obama's tenure, the White House said Friday.

Last year's deficit was $680 billion. The latest update from the White House budget office is also $66 billion less than the administration predicted earlier this year when releasing the president's budget.

Obama presided over trillion-dollar-plus deficits during his first term as the economy struggled to recover from a deep recession and financial crisis. Attempts to strike deals on spending cuts and revenue increases with GOP leaders such as House Speaker John Boehner of Ohio have failed, though Obama was successful in muscling through a tax increase on wealthier earners in early 2013. Tight spending on annual agency budgets is also responsible for lower deficits.

The nonpartisan Congressional Budget Office projects an even lower deficit of $492 billion for the budget year ending Sept. 30.

"Under the president's leadership, the deficit has been cut by more than half as a share of the economy, representing the most rapid sustained deficit reduction since World War II, and it continues to fall," said acting White House budget director Brian Deese. "At the same time, our economy is moving forward and businesses are creating jobs. Businesses have added nearly 10 million new jobs over the past 52 months."

The White House has also lowered its economic growth forecast for the current year to 2.6 percent, reflecting the unexpected 2.9 percent drop in gross domestic product in the first quarter of this year when unusually severe weather dinged the economy. Its earlier prediction was for a 3.3 percent hike in GDP.

The budget office projects unemployment to drop to 6 percent by the end of the year, for an average 6.3 percent for the year. The jobless rate in June was 6.1 percent, the lowest since 2008. It also projects that the average unemployment rate for 2015 will be 5.7 percent and then stabilize at 5.4 percent in 2017, a year and a half earlier than the budget office anticipated just months ago.

Obama's budget released in March called for a variety of tax increases and promised new help for the working poor and additional money for road-building, education and research. It also pulls back from controversial cuts to Social Security cost-of-living increases that had angered Democrats.

The Treasury Department announced that the government ran a surplus of $71 billion for the month of June.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • InternationalMore>>

  • As Iraq gets new president, car bomb kills 21

    As Iraq gets new president, car bomb kills 21

    Thursday, July 24 2014 1:46 PM EDT2014-07-24 17:46:32 GMT
    Iraqi officials say militants have attacked a prisoner convoy north of Baghdad, killing 52 prisoners and eight soldiers.
    Iraqi officials say a double car bombing in central Baghdad has killed 21 people and wounded 33, hours after lawmakers elected the country's new president.
  • Air Algerie flight 'probably crashed' in Mali

    Air Algerie flight 'probably crashed' in Mali

    Thursday, July 24 2014 1:45 PM EDT2014-07-24 17:45:41 GMT
    The official Algerian news agency says an Air Algerie flight from Burkina Faso to Algiers has disappeared from the radar.
    An Air Algerie flight carrying 116 people from Burkina Faso to Algeria's capital disappeared from radar early Thursday over northern Mali during a rainstorm, officials said. France deployed fighter jets to search for...
  • Ukrainian prime minister announces resignation

    Ukrainian prime minister announces resignation

    Thursday, July 24 2014 1:35 PM EDT2014-07-24 17:35:09 GMT
    Ukrainian Prime Minister Arseniy Yatsenyuk has announced his resignation following turmoil in government.
    Ukrainian Prime Minister Arseniy Yatsenyuk announced his resignation Thursday, opening the way for new elections that would reflect the country's starkly changed political scene after the ouster of pro-Russian...