FILE - The co-chairmen of the president's deficit reduction commission, Erskine Bowles, right, and Alan Simpson talk to reporters outside the White House in Washington, in this April 14, 2011 file photo after their meeting with President Barack Obama in the Oval Office. The $2.3 trillion less that Washington will be borrowing over the next decade takes the government much of the way toward the $4 trillion, 10-year goal set by Obama and the co-chairmen of his deficit commission, former Republican Sen. Alan Simpson and former Democratic White House staff chief Erskine Bowles. (AP Photo/Carolyn Kaster, File)
News Summary: Gov't finances improve in short term
Published: 06:01:48 PM, Tue 12 March 2013 UTC
SHRINKING DEFICIT: The federal budget deficit will drop to $845 billion this year after topping $1 trillion for four straight years, the Congressional Budget Office projects. It expects deficits will shrink to $430 billion by fiscal 2015.
LOWER BORROWING: Government borrowing has dropped to roughly 25 cents for every dollar it spends, from over 40 cents per dollar a few years ago. Tax receipts are rising and spending is moderating.
LONG-TERM PROBLEM: But without higher taxes, changes in the big benefit programs like Medicare, Medicaid and Social Security, cuts in other government services or a combination of the three, the CBO says deficits by the end of the decade will again be in the $800 billion range.
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