CBO: Obama budget produces 2013 deficit of $977B

WASHINGTON (AP) ? A new analysis of President Barack Obama’s budget for next year says the deficit scenario next year isn’t as rosy as the administration painted it.

The Congressional Budget Office says tax revenues for the 2013 budget year were over-estimated and thus was the projected $901 billion deficit. It says the figure is $977 billion.

For the current 2012 budget year, CBO says Obama’s policies would generate a $1.25 trillion deficit. That’s actually $74 billion better than the White House forecast.

The differences aren’t unusual and generally are caused by CBO’s less optimistic view of the economy over the next couple of years. The White House forecasts higher income and corporate profits.

Overall, CBO says Obama’s budget would generate somewhat lower deficits over the coming decade than the White House predicts.