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>>

  • Prosecutor: Doctor fired back at hospital gunman

    Prosecutor: Doctor fired back at hospital gunman

    Thursday, July 24 2014 5:44 PM EDT2014-07-24 21:44:02 GMT
    Police in suburban Philadelphia are investigating a shooting at a hospital campus and say they have reports people have been injured and a suspect is in custody.
    A doctor wounded by a patient in a deadly shooting at a suburban hospital campus returned fire and wounded the patient, authorities said.
  • Execution offers evidence against lethal injection

    Execution offers evidence against lethal injection

    Thursday, July 24 2014 5:43 PM EDT2014-07-24 21:43:04 GMT
    The nation's third botched execution in six months offers more evidence for the courts that lethal injection carries too many risks and amounts to cruel and unusual punishment, death-row lawyers and other...
    The nation's third botched execution in six months offers more evidence for the courts that lethal injection carries too many risks and amounts to cruel and unusual punishment, death-row lawyers and other opponents...
  • Walsh campaign: Senator won't withdraw from race

    Walsh campaign: Senator won't withdraw from race

    Thursday, July 24 2014 5:16 PM EDT2014-07-24 21:16:39 GMT
    Sen. John Walsh said his unattributed use of others' work in his master's thesis was not plagiarism but "a few citations that were unintentionally left out of a term paper" that he blamed in part on...
    Sen. John Walsh remained steadfast Thursday amid allegations he plagiarized a research project required for a master's degree, winning fresh backing from fellow Democrats in Montana and the governor who appointed him...
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>>

  • Ex-Venezuelan intelligence chief detained in Aruba

    Ex-Venezuelan intelligence chief detained in Aruba

    Thursday, July 24 2014 5:03 PM EDT2014-07-24 21:03:45 GMT
    Authorities in Aruba say they have detained a former Venezuelan intelligence official on a request from the U.S. government.
    Authorities in Aruba announced Thursday that they arrested a close confidant of late Venezuelan President Hugo Chavez who was sent as that country's consul to the Caribbean island despite being sanctioned by the U.S....
  • Dutch sending unarmed police to Ukraine crash site

    Dutch sending unarmed police to Ukraine crash site

    Thursday, July 24 2014 5:03 PM EDT2014-07-24 21:03:38 GMT
    The Dutch prime minister says he is sending 40 unarmed military police to eastern Ukraine as part of a ramped-up effort to find the last victims of the downed Malaysia Airlines Flight 17 still at the wreckage site.
    The Netherlands is sending 40 unarmed military police to eastern Ukraine as part of a ramped-up effort to find the last victims of the downed Malaysia Airlines Flight 17 still at the wreckage site, Prime Minister Mark...
  • Iraq elects new president as attacks kill dozens

    Iraq elects new president as attacks kill dozens

    Thursday, July 24 2014 4:47 PM EDT2014-07-24 20:47:52 GMT
    Iraqi officials say militants have attacked a prisoner convoy north of Baghdad, killing 52 prisoners and eight soldiers.
    Iraqi lawmakers elected a veteran Kurdish politician on Thursday to replace long-serving Jalal Talabani as the country's new president in the latest step toward forming a new government. But a series of attacks killed...