The White House today cut its forecast for the federal budget deficit this year to $205 billion, saying an expanding economy will boost tax revenues.
The forecast for the 2007 fiscal year to September 30 represented a reduction of $43 billion or 18% from last year, the White House said in a semiannual budget review.
'This projected deficit is 1.5% of gross domestic product (GDP), well below the 40-year average of 2.4%,' a White House statement said.
'This estimate is also $39 billion lower than the estimate in the February budget, primarily due to higher-than-expected tax receipts', it added.
The revised projections show the budget coming into balance in 2012, based on President George W. Bush's spending programs.
