Is Federal Budget Deficit Shrinking?

The White House says the federal budget deficit for the current fiscal year will shrink to $759 billion. That's more than $200 billion less than the administration predicted just three months ago.

The new figures reflect additional revenues generated by the improving economy and take into account automatic, across-the-board spending cuts that the White House had hoped to avert.

The 2013 budget year ending Sept. 30 will be the first one of Obama's presidency in which the deficit won't exceed $1 trillion. Obama inherited a struggling economy and record deficits. A 2011 deficit-cutting deal with Republicans has pared deficits somewhat, as did a tax hike enacted earlier this year on upper-bracket earners.

But Obama has remained at odds with Republicans over cutting benefit programs and further tax increases.

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