White House revises down projected FY22 fiscal deficit to $1.032 trn

It also revised its inflation projection for 2022 to 6.6 per cent from 2.9 per cent in March.

The US fiscal year ends on September 30.

The fiscal deficit projection reflects stronger-than-expected revenues offset by new spending and technical re-estimates of healthcare and other outlays.

The White House cited the resurgence of the omicron variant of the novel coronavirus, the Russia-Ukraine conflict, persistent inflation and higher interest rates for the slowdown.

Outlays increased by $121 billion from the March forecast, largely due to spending legislation passed earlier this year, and estimated increases in net interest costs and higher spending on Medicaid healthcare for the poor, as well as student loans and financial assistance.

Fibre2Fashion News Desk (DS)