The U.S. Congressional Budget Office (CBO) said on Tuesday that it expects a higher budget deficit for this year. The office expects a budget deficit of $544 billion, up from a deficit of $439 billion in 2015.

The CBO cut its 2016 revenue forecasts to $3.38 trillion from $3.51 trillion.

"If current laws generally remained unchanged, the deficit would grow over the next 10 years, and by 2026 it would be considerably larger than its average over the past 50 years," the office said.

The CBO expects the U.S. economy to grow solidly this year and next.