White House says '14 budget deficit to be $583 billion

The White House budget office on Friday projected the 2014 budget deficit would be $583 billion, about $66 billion less than projected earlier this year.

In the mid-session review by the Office of Management and Budget, the administration found the deficit would be 3.4 percent of GDP and nearly $100 billion less than last year’s deficit.

Acting OMB Director Brian Deese touted the recent decline in unemployment as a factor in the lower deficit projection.

“Businesses have added nearly 10 million new jobs over the past 52 months,” he wrote in a blog post.

Deese also cited rising home prices as lifting more mortgage holders above water on their mortgages, boosting the economy and federal revenues.

OMB estimates budget deficits will fall to below 3 percent of GDP in 2015 and reach 2.1 percent of GDP by 2024.

Much of Obama’s presidency has been clouded by rising red ink, and annual budget deficits in his first term topped $1 trillion annually.

But Deese said that the nation’s deficit now has been cut by more than half as a share of the economy, which he cited as the most rapid sustained deficit reduction since World War II.

In April, the Congressional Budget Office projected that Obama’s new budget would result in deficits totaling $6.6 trillion between 2015 and 2024.

The mid-session review contains revised estimates of receipts, outlays, budget authority and the budget deficit for fiscal 2014 through 2024.