The Congressional Budget Office has updated its ten-year federal budget deficit forecast, now predicting it will be smaller than previously estimated. The CBO said deficits over the coming decade are now projected to total $7.2 trillion -- about $400 billion less than the cumulative deficit it forecast in April. The CBO said although revenues over that period are expected to be lower than previously estimated, projected outlays decline even more due to lower anticipated interest costs. The deficit CBO now estimates for fiscal 2014 now amounts to $506 billion, more than the $492 billion it predicted in April, but still smaller than those of recent years.

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