The Office of Management and Budget reported Thursday that the federal deficit is expected to be $1.32 trillion in fiscal 2011, down $329 billion from its February estimate, while it projected the unemployment rate could be 9.0% by the end of 2012, based on its mid-session review of President Obama’s fiscal 2012 budget.

The deficit was revised lower by a combination of stronger tax receipts and lower spending, the OMB said. The new estimate takes into account the $1.5 trillion in savings over 10 years required by the Budget Control Act, passed to raise the debt ceiling in August.

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