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Federal deficit to hit $600B this year

Federal deficit to hit $600B this year
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The federal government’s budget deficit will reach $600 billion by the end of the year, growing about $162 billion from 2015, the White House projected Friday.

The latest projection is about $16 billion less than what officials said in their latest budget report in February. Still, the sharp increase in this year's annual deficit is disappointing for the administration.

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This year's $600 billion deficit would be the highest in three years. It comes just shy of the $680 billion deficit in 2013 — the first time the deficit fell below $1 trillion during Obama's presidency. 

President Obama has touted the declining deficits in recent years as proof that his policies helped the economy rebound after the 2008 recession, though the figures released Friday could weaken that argument, just six months before he leaves office.

The federal deficit peaked at $1.4 trillion at the height of the fiscal crisis in 2009, shortly before Obama took office. The deficit then accounted for about 9.8 percent of total GDP.

This year’s budget deficit will be about 3.3 percent of GDP.

Last week, figures from the nonpartisan Congressional Budget Office warned of many more years of higher deficits to come, which will lead to ballooning national debt. The CBO said the U.S. is on track to exceed its highest recorded level of federal debt by 2035.