The Obama administration is trumpeting a shrunken federal deficit as new justification for more spending and an end to mandatory budget cuts. The Congressional Budget Office, though, already has warned of “dramatic” debt trouble ahead.
The Department of Treasury last week released the numbers for fiscal year 2015, announcing a $44-billion drop in the deficit from the year before. The deficit stands at $439 billion, which is 2.5 percent of gross domestic product.
Shaun Donovan, director of the Office of Management and Budget, heralded the numbers as the lowest deficit since President Obama took office.
“The deficit has been reduced by nearly three-fourths as a share of the economy since 2009,” Donovan said in a written statement, adding that the figures represent “the most sustained deficit reduction since just after World War II.”