Federal budget deficit projected to shrink by more than half in 2022: report

The United States federal government's budget deficit is likely to fall by more than fifty percent in 2022 due to higher-than-expected tax revenues and drawn-down pandemic spending.

"The budget gap for fiscal 2022 will total an estimated $1 trillion — $1.7 trillion less than the deficit last year and about $400 billion less than officials projected in March, according to the White House’s mid-year budget update released Tuesday," Politico reported.

Politico noted that the figures "don’t include the additional savings expected from the recently passed health care, climate and tax bill, which is estimated to shave another $300 billion off deficits over the next decade," indicating that President Joe Biden's policies have resulted in a "record" reduction in federal borrowing.

READ MORE: Eliminating $10,000 in student debt would help most borrowers. But it is not enough

Per Politico, one administration official told reporters on a call that "once again makes clear that we can and must make critical investments in the middle class, in expanding economic opportunity, and in tackling big challenges, and that we can do so in a way that is smart and fiscally and economically responsible."

Politico also pointed out that "looking ahead, White House officials see rising interest rates pushing up the government’s costs to service its $24 trillion debt load as the Fed continues to raise rates to ease price pressures. But an administration official said Tuesday that those costs, adjusted for inflation, are expected to remain below their historical average as a share of economic growth."

READ MORE: Rick Scott slammed for criticizing Joe Biden's staycation while tweeting from a luxury yacht in Italy