The CBO says the deficit will be $468 billion for the budget year that ends in September 2015, slightly less than last year's $483 billion deficit.
As a share of the economy, CBO says this year's deficit will be slightly below the historical average of the past 50 years.
Things look good in the near term. The CBO projects solid economic growth for the next few years, along with a drop in unemployment. Beyond 2018, however, the CBO projects that federal deficits will begin rising again as more baby boomers retire and enroll in Social Security and Medicare.
"The deficit in 2025 is projected to be $1.1 trillion, or 4% of GDP, and cumulative deficits over the 2016–2025 period are projected to total $7.6 trillion," the CBO announced. "Federal debt held by the public will amount to 74 percent of GDP at the end of this fiscal year—more than twice what it was at the end of 2007 and higher than in any year since 1950 (see figure below)."