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Deficit
Estimate Drops Again Due to Rising Revenues
As a result of continuing economic
growth and an accompanying surge in federal tax revenues, the fiscal year 2006
deficit estimate has dropped to about $250 billion, according to the
Congressional Budget Office’s (CBO’s) Monthly Budget Review released today.
This preliminary CBO estimate is considerably lower than the Office of
Management and Budget’s July deficit estimate of $296 billion, and it is lower
than the CBO’s August estimate of $260 billion. It also contrasts sharply with
the Administration’s February forecast of a $423 billion deficit this
year.
“This latest estimate shows how pro-growth economic policies are working and
we’re moving in the right direction, but there’s more work to be done in
order to balance the budget. We need to keep up this progress by reining in
unnecessary spending and preventing tax hikes that could hurt the growth of jobs
and our economy,” said Wisconsin’s First District Congressman Paul
Ryan.
The latest CBO deficit projections show:
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A decline of $68 billion from the fiscal year 2005 actual deficit.
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The deficit as a share of the
economy (GDP) – currently at 1.9 % – is below the average of the past 40
years.
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Federal revenues for fiscal year 2006 running 11.8 % ahead of last year.
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Contact: Kate
Matus (202) 226-7326
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