The budget deficit for 2015 is expected to drop to roughly $425 billion, according to a report released Friday by the nonpartisan Congressional Budget Office (CBO).
That’s down from the $486 billion the CBO projected in March.
If it drops to $425 billion by the end of the fiscal year on Sept. 30, it would be a seven-year low for the government’s annual budget shortfalls.
Last year’s deficit was $483 billion, 2.1 percent of gross domestic product, the lowest level since 2008.
The CBO said Friday that in the first 10 months of this year, the government collected $196 billion more in taxes than during the same period last year. The amount collected in personal income taxes rose by 8 percent, along with 9 percent for corporate taxes.
Spending was also $198 billion higher for that same period this year compared to last year. It increased for entitlement programs Medicaid, Medicare and Social Security.
Defense Department spending on the military fell by 2 percent.
The CBO is scheduled to release its multi-year budget projections later this month.