The Obama administration projects that the federal budget deficit will drop to the lowest level in five years, $759 billion for the year ending Sept. 30, as the economy improves and tax collections increase.
The Office of Management and Budget said in an update of its forecasts that the economy may grow 2 percent this calendar year. That’s slower than the 2.3 percent growth rate predicted three months ago. The median forecast of 86 analysts surveyed by Bloomberg is for a 1.9 percent gain.