The mid-session review budget update shows that the White House is now expecting a $455 billion deficit in fiscal 2015 that started on October 1, 2014 and ends on September 30, 2015, Xinhua reported on Tuesday.
The forecast is nearly $30 billion less than last fiscal’s deficit and $128 billion lower than its last estimate in February.
The office of management and budget under the White House, author of the budget update, said the revision is mainly due to new calculations of higher revenues and lower spending.
The report also cut forecast for the US economic growth for calendar 2015 down to two percent from its previous estimate of three percent, which largely reflects the economic contraction in the first quarter of this year.
It expects the economic growth to rebound in the second quarter and remain above trend during the second half of 2015 and through 2018.
According to its forecast, the US economy is projected to grow 2.9 percent in 2016 and then slow to 2.8 percent during 2017.
The White House’s improved budget forecast comes as the Congress faces budget debate in the coming months over funding for the new fiscal year starting on October 1.