CBO: US Deficit To Be 24% Below Forecast

Bloomberg.com: U.S.: " 'Rising tax payments and a growing economy may push the U.S. federal deficit down to $325 billion or lower, a 24 percent decline from the previous estimate,' the Congressional Budget Office said. The agency, in a monthly snapshot for fiscal 2005 that ends on Sept. 30, said tax payments and spending were running ahead of the year-ago pace. As a result this year's deficit 'will be significantly less than $350 billion, perhaps below $325 billion.' The White House is scheduled to issue its revised estimates on tax collections, spending and the deficit on July 13. In February, White House budget director Joshua Bolten forecast a deficit of $427 billion, about 3.5 percent of the nation's gross domestic product.

``Treasury receipts have been skyrocketing since April,'' and in June ``corporate receipts will lead this boon,'' said Ellen M. Beeson, an economist at the Bank of Tokyo-Mitsubishi Ltd. in New York, in an interview before the report. Her firm expects the July 13 report to forecast a 2005 deficit of $315 billion to $330 billion. 'The stock market will certainly like the lower-than- expected deficit as it will mean less financing will be needed to cover U.S. debt,' Beeson said.

In its monthly report, the nonpartisan Congressional Budget Office said federal tax collections from people and corporations are up about 15 percent from the same period a year ago, and spending is up about 7 percent."
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