US projects $3.12T deficit for this year, down $555B

The Biden administration is forecasting that this year’s budget deficit will be $555 billion lower than it estimated back in May, helped by an economy that is rebounding more quickly than had been expected.

But even with the improvement, the administration said Friday that it is forecasting a deficit of $3.12 trillion for the budget year that ends Sept. 30. That would be the second largest deficit in history, exceeded slightly by last year’s $3.13 trillion deficit.

And for the next decade, the administration never sees the annual deficits falling below $1 trillion. For the 2022 budget year, which begins Oct. 1, the administration is projecting a deficit of $1.54 trillion.

The non-partisan Congressional Budget Office forecasts an even lower deficit of $1.15 trillion next year.