Reduced government spending will cut the U.S. budget deficit to $ 1.21 trillion in 2012, or about $ 116 billion lower than projected in February, the White House said Friday. This would be down slightly from the $ 1.30 trillion deficit logged in 2011. In its mid-session review of the budget, the Office of Management and Budget said the reductions in spending were due to delays in enacting some of the job proposals passed in February. Some of the spending cuts were offset by a reduction of $ 27 billion in receipts due to the weaker economy. OMB predicted that the unemployment rate would average 8% in 2012 before inching lower to 7.7% in 2013 and 7.3% in 2014. Growth will rise by 2.3% this year before increasing to 2.7% in 2013 and 4% in 2014, the White House forecasts.
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