US: Budget deficit forecast to fall to $468bn

THE US budget deficit would decline slightly to $468 billion (R5.35 trillion) this fiscal year, the lowest level since President Barack Obama took office, congressional forecasters said on Monday in a report heralding the end of a brief period of dramatically shrinking red ink. The deficit, down from the $1 trillion-plus levels of Obama’s first four years and a $483bn gap in fiscal 2014, will stay largely flat next year, then begin to march upward due to rising costs for debt and caring for fast-retiring baby boomers. Republicans, now in control of Congress, seek to eliminate deficits within 10 years with cuts to social safety net programmes while lowering tax rates and boosting military spending. Obama and his Democrats have proposed new education and infrastructure spending and tax breaks for middle-class Americans to set the agenda for the 2016 presidential election. – Reuters