Budget Deficit Decline Predicted
The Congressional Budget Office predicted Tuesday that the federal budget deficit would be $161 billion for the fiscal year that ends Sept. 30, down from $203.2 billion last year and an all-time high of $290.4 billion only three years ago.
The large improvement in the budget picture is the result of both strong economic growth that has lifted revenues and spending restraint.
The CBO said revenues this year likely will be $1.357 trillion, up almost 8% from fiscal 1994. Meanwhile, spending is rising slightly less than 4%.
As recently as April, the CBO was forecasting a $175-billion deficit.
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