Minnesota's surplus for the next two-year budget has plummeted by $160 million, according to the latest forecast, which cites federal policy changes and inflation as reasons for the decline.

Minnesota’s projected budget surplus for the next two years has shrunk amid economic uncertainty, and a deficit anticipated down the line has grown to about $6 billion. State budget officials released topline details of Minnesota’s latest economic forecast Thursday morning.

The projections are down from November’s budget forecast and will give lawmakers a clearer picture for passing a budget this session.