Federal Deficit Falls Nearly $100 Billion

Federal Deficit Falls Nearly $100 Billion
7/13/2005

WASHINGTON, D.C. - Today, the Office of Management and Budget reported the FY2005 Budget Deficit is projected to be $94 billion less than forecasted this past February. Recent gains in the overall economy, fueled by tax-relief, have generated stronger than projected revenues resulting a significantly lowered $333 billion deficit.

"The pro-growth policies of this Congress continue to cut the deficit and put people to work," said Conaway, a CPA and member of the House Budget Committee. "We have held the line on spending and unemployment is the lowest it has been since before September 11, 2001. Our fiscal policies are working and it is time to further our economic gains by making the tax cuts of 2001 and 2003 permanent and by reforming our tax system so that it is simpler and fairer for all Americans."

Also, since May 2003, the U.S. economy has created 3.7 million jobs leading to a 14 percent increase in tax receipts. The unemployment rate dropped to 5.0 percent in June, the lowest since 2001 and lower than the average rate of the last three decades. The $333 billion deficit constitutes only 2.7 percent of the national GDP, smaller than the deficits of the past 15 years.

http://conaway.house.gov/news/article.asp?nws_id=34