WASHINGTON (AP) -- A new government report is predicting the budget deficit will drop below $1 trillion for the first time in President Barack Obama's tenure in office.

The Congressional Budget Office analysis says the government will run a $845 billion deficit this year, a modest improvement compared to last year's $1.1 trillion shortfall, but still enough red ink to require the government to borrow 24 cents of every dollar it spends.

The agency also projects that the economy will grow just 1.4 percent this year if $85 billion in across-the-board spending cuts take effect as scheduled March 1. Unemployment would average 8 percent.

The report predicts the deficit would dip to $430 billion by 2015. That would be a relatively low 2.4 percent when measured against the size of the economy.