October 21, 2014 11:57AM # OMB Director Sets a Low Bar for Deficit Reform By [David Boaz](https://www.cato.org/people/david-boaz) --- SHARE Jonathan House [reported](http://online.wsj.com/articles/u-s-budget-deficit-in-2014-narrows-to-lowest-level-in-six-years-1413385493) \[$\] in the *Wall Street Journal*: > The U.S. government’s budget deficit narrowed in its 2014 fiscal year to its lowest level in six years, as an improving economy boosted tax revenues. > > > The annual deficit for fiscal year 2014 fell 29% to $483.35 billion, the Treasury Department said Wednesday… the lowest deficit since 2008. … > > > The 2014 deficit fell to 2.8% of the country’s gross domestic product, the broadest measure of economic output. This measure, preferred by economists because it offers greater context, was at its lowest level since the fiscal year ending Sept. 30, 2007. > > > “This is not only a reduction of the deficit, it’s also a return to fiscal normalcy,” said White House budget director Shaun Donovan. The Obama administration’s definition of “fiscal normalcy” is a deficit just under half a trillion dollars, larger than in any year before 2009. The national debt, which was about $5.7 trillion when George W. Bush entered office and $11 trillion when he turned the White House over to Barack Obama, is [now](http://www.treasurydirect.gov/govt/reports/pd/pd_debttothepenny.htm) at just a shade under $18 trillion. And the director of the Office of *Management* and *Budget* declares that a “return to fiscal normalcy.” Where is Warren Harding now that we need him? But hold on, there’s more: Donovan also [noted](http://www.washingtonpost.com/blogs/wonkblog/wp/2014/10/15/nations-budget-deficit-falls-to-lowest-level-since-obama-took-office/) that the federal government has abandoned its “harmful excessive budget austerity.” So we can expect more spending, and [more deficits, and more debt,](https://www.cato.org/policy-report/julyaugust-2011/deficits-debt-debasement) in the years to come. ##### Related Tags [Tax and Budget Policy](https://www.cato.org/tax-budget-policy) [![Creative Commons License](/build/cato_2020/images/creative-commons.svg)](http://creativecommons.org/licenses/by-nc-sa/4.0/) This work is licensed under a [Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License](https://creativecommons.org/licenses/by-nc-sa/4.0/).