(From the nytimes.com) The Obama administration on Friday trimmed its estimate of the federal budget deficit for this year but said the weak economy had led it to increase its deficit projection for next year. The White House’s Office of Management and Budget projected that the deficit for the fiscal year ending Sept. 30 would be $1.47 trillion, $84 billion lower than it estimated in February but still a record in dollar terms. Much of the reduction stemmed from lower than anticipated outlays for unemployment insurance.

Measured as a percentage of total economic output — the gauge that economists say is most meaningful — the deficit would be 10 percent of gross domestic product. That would be about the same as last year, a level that could not be sustained over the long run without endangering the economy, but well below the records set during World War II.

For next year, the White House projected a deficit of $1.42 trillion, $150 billion more than estimated in February. Next year’s projected deficit would be 9.2 percent of the economy.

Read more here: U.S. Agency Trims Estimate of the Deficit