U.S. 2015 Budget Deficit Higher Than Previous Estimate, CBO Says

The U.S. budget deficit for the fiscal year that ended in September was higher than previously expected, the Congressional Budget Office estimated.

The shortfall was $435 billion in fiscal year 2015, compared with $483 billion a year earlier, according to a CBO forecast released on its website Wednesday in Washington. The agency previously estimated the gap to be $426 billion. The predicted deficit will be the smallest since 2007, CBO said.

Revenue rose 8 percent while spending increased 5 percent compared with the previous fiscal year, CBO said, adding that the Treasury Department will report the actual deficit later this month.

Lower than expected corporate and individual tax receipts led U.S. Treasury Secretary Jacob J. Lew to predict that, unless Congress increases the debt ceiling, the government will hit the borrowing limit on or about Nov. 5. At that point, the Treasury will no longer be able to sell additional debt.