The federal budget deficit will clock in at $702 billion in fiscal 2017, the Trump administration projected Friday in an update to its budget.

That shortfall would be $99 billion more than the Office of Management and Budget projected in May, thanks to slower-than-anticipated tax collections.

It also would be the biggest annual deficit since 2012.

The Office of Management and Budget's estimates roughly align with those released by the nonpartisan Congressional Budget Office two weeks ago. Then, the CBO said that slowing tax revenue was likely to drive the deficit up to $693 billion.

President Trump's budget director, Mick Mulvaney, said on releasing the new projections that the rising deficits facing the government highlight the need for "fiscal discipline."

Mulvaney also blamed former President Barack Obama for the fiscal situation. "Our nation must make substantial changes to the policies and spending priorities of the previous administration if our citizens are to be safe and prosperous in the future," he said.

The budget office sees the fiscal 2018 deficit growing faster than previously thought, to $589 billion. That is $149 billion more than it previously estimated.