U.S. Budget Deficit Reaches Lowest Since 2007

The video discusses the significant reduction in the U.S. deficit, which fell to $483 billion, the lowest since 2008. This improvement is attributed to a better economy, tax provision expirations, and budget deals. Despite this progress, future projections by the CBO indicate a potential rise in the deficit by 2016 without broader budget agreements. Politically, this reduction is seen as beneficial for Democrats, though public perception still favors Republicans on deficit management.

What is the CBO's projection for the deficit by 2016?

What challenge does the administration face regarding public perception of the deficit?