U.S budget deficit to drop to $583 billion this year

Washington, Jul 12, 2014: The U.S government budget deficit in 2014 will come down to USD 583 billion, a drop of USD 100 billion over the previous year.

This is the sharpest drop during the period of Obama administration, the White House said on Friday.

The Obama administration projected a $649 billion deficit for the fiscal year ending on Sept. 30 when it delivered its budget proposal to Congress in March. The deficit peaked at $1.4 trillion in 2009 in the aftermath of the 2007-2009 recession.

The White House said it revised its forecast in the so-called Mid-Session Review because the national unemployment rate has come down more rapidly than expected. The jobless rate fell to 6.1 per cent in June from 6.7 per cent in March, a six-year low.