Biden administration forecasts $1.03T deficit, down $400B

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — The Biden administration is forecasting that this year’s budget deficit will be nearly $400 billion lower than it estimated back in March, due in part to stronger than expected revenues, reduced spending, and an economy that has recovered all of the jobs lost during the multi-year pandemic.In full, this year’s deficit will decline by $1.7 trillion, representing the single largest nominal decline in the federal deficit in American history, the Office of Management and Budget says.Despite the gains, the administration said Tuesday that it is forecasting a deficit of $1.03 trillion for the budget year that ends Sept. 30. That number signifies a movement away from the record deficit in 2020, which reached $3.13 trillion.