CBO Raises 2016 Deficit Estimate By $130 Billion

The Congressional Budget Office raised its estimate of the budget deficit for fiscal 2016 to $544 billion from $414 billion. The nonpartisan CBO said the bigger estimate was mostly due to the retroactive extension of several corporate and individual tax provisions. As a percentage of gross domestic product the deficit would be 2.9%, versus the previously estimated 2.2%. The government's budget year runs from October through September.