The federal budget deficit will be $600 billion for fiscal year 2016, the White House Office of Management said Friday in its update to the president's budget documents.

That's a significant increase from last year's $438 billion shortfall, but it's also $16 billion lower than what the White House projected in February for this year, when it expected a $616 billion deficit.

The White House lowered the deficit estimate because it now sees less spending, thanks to a variety of technical factors and lower interest rates on the debt. Although it expects tax revenues to fall short of its earlier projections, it sees spending falling even more.