Thanks to higher taxes, cuts to government spending and an improving economy, the federal government's budget deficit will drop to $583 billion this year.

On Friday, the White House announced that the deficit is down by almost $100 billion from last year's deficit, which was $680 billion.

To cut the deficit, the U.S. government ran on a $71 billion surplus in June, which is 39 percent lower than last June. As a result, this helped the nation reach the lowest deficit since President Obama has been in office, The Wire reported.

The government's deficit for the fiscal year, which started in October and ended in June, was $366 billion, 28 percent lower than the same time a year ago, said the U.S. Treasury Department on Friday, The Associated Press reported.

According to the Wall Street Journal, "The year-to-date deficit was the smallest since 2008, when the U.S. economy was in recession. The deficit hit its latest peak in 2009 but has since shrunk, due to a combination of a slowly improving economy, higher taxes and government spending cuts."

The Congressional Budget Office gave an even better prediction, estimating that the deficit will be $492 billion.

"The federal government ran a budget deficit of $366 billion for the first nine months of fiscal year 2014, CBO estimates-$144 billion less than the shortfall recorded over the same span last year," the CBO's Monthly Budget Review for June 2014 said. "Through the end of June, revenues were about 8 percent higher and outlays were about 1 percent higher than they were at the same point last year."

"Obama presided over trillion-dollar-plus deficits during his first term as the economy struggled to recover from a bad recession and financial crisis," the AP reported. "Attempts to strike deals with GOP leaders such as House Speaker John Boehner of Ohio have failed, though Obama was successful in muscling through a tax hike on wealthier earners in early 2013. Tight spending on annual agency budgets is also responsible for lower deficits."