WASHINGTON, Aug 23 (Globe Live Media) – The White House on Tuesday revised down its projected fiscal deficit for fiscal 2022 to $1.032 trillion, down $383 billion from its budget forecast in March, reflecting higher revenues. solid, slightly lower expenses and some technical reestimates of health outlays.
The White House budget review includes the impact of legislation passed since the Joe Biden administration proposed its fiscal 2023 budget in March, including the Consolidated Appropriations Act and a $30 billion Ukraine supplemental spending bill. Dollars.
The new forecasts, completed June 9, do not include legislation passed since then, including a $52 billion semiconductor and analytics subsidy act and a $52 billion package of tax increases, health care and clean energy investments. 430,000 million dollars.
The latest law is expected to further narrow the gap.
Much of the cut in the deficit projection for fiscal year 2022 comes from a $504 billion increase in revenues, above the levels forecast in March, in the face of higher personal income tax collections driven by the growth of employment and wages, and the rise in corporate and special taxes.
Outlays increased by $121 billion from the March forecast, largely due to the spending law passed earlier this year and estimated increases in net interest costs and higher Medicaid health care spending for low-income people, as well as student loans and financial aid.
The White House also lowered its economic projections, with the outlook for US real GDP growth in 2022 sharply lowered to 1.4% from an estimated 3.8% in March, based on fourth-quarter comparisons.
The government cited the resurgence of the omicron variant of COVID-19, the war in Ukraine, persistent inflation and higher interest rates in pinpointing its slowdown forecasts.
The inflation forecast for 2022 was revised down to 6.6%, now in line with market estimates.