Feb 5, 2014 13:08 New report: Budget deficit to drop to $514B New report: Budget deficit to drop to $514B The U.S. Capitol in Washington is shown in this Sept. 30, 2013, AP file photo. (AP Photo/ Evan Vucci, File) ANDREW TAYLOR| Associated Press Feb. 05, 2014 Comments WASHINGTON (AP) — A new report says the government’s budget deficit is set to fall to $514 billion for the current year, down substantially from last year and the lowest by far since President Barack Obama took office five years ago. The Congressional Budget Office report credits higher tax revenues from the rebounding economy and sharp curbs on agency spending as the chief reason for the deficit’s short-term decline. But CBO sees the long-term deficit picture worsening by about $100 billion a year through the end of the decade because of slower growth in the economy over the coming decade than it had previously predicted. Last year’s deficit registered $680 billion. Obama inherited an economy in crisis and first-ever deficits exceeding $1 trillion.