July 13, 2005

New OMB Report Shows Huge Deficit Decline: Pryce Hails More Strong Economic News

WASHINGTON , DC —Today, House Republican Conference Chairman Deborah Pryce (R-OH) issued the following statement after the Office of Management and Budget released its mid-session review of the Federal Budget:

“Today’s report reflects the reality of the American economy: our nation is producing more, and our government is spending less,” said Pryce. “With sustained job growth, falling deficits, low interest rates, and a booming housing market, America’s economy is strong and getting stronger.

“In contrast to the doom-and-gloomers, House Republicans have had faith in the American people’s ability to grow our economy and are looking to the future with confidence.”

The Office of Management and Budget’s Mid-Session Review predicted the Fiscal Year 2005 deficit to clock in at $333 billion—$94 billion less than originally forecasted. The decrease comes as a result of increased revenues and reduced growth in outlays.

In addition to today’s reported decline in the deficit, June’s payroll report showed that 146,000 jobs were created last month while the unemployment rate fell to 5.0 percent—the lowest since September 2001. The unemployment rate is down from its peak of 6.3 percent in June of 2003. 3.7 million jobs have been created since May of 2003, and June marked the 25 th straight month of job creation.