The White House’s annual update to its most recent budget forecasts shows a brighter near-term picture for federal finances but a gloomier outlook for inflation and economic growth.
Compared with late March when the Biden administration released its fiscal 2023 budget request, the Office of Management and Budget in a report issued Tuesday sees the deficit for the current fiscal year dropping to just over $1 trillion, a $383 billion improvement from its prior forecast.
It’s also $1.7 trillion lower than the previous fiscal year’s budget shortfall, a drop that OMB Director Shalanda Young touted in a blog post as the “single largest nominal decline in the federal deficit in American history.”
