Budget Deficit Narrows to $205 Billion
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By THE ASSOCIATED PRESS
Published: July 11, 2007
Filed at 9:19 a.m. ET

WASHINGTON (AP) -- The nation's budget deficit will drop to $205 billion in the fiscal year that ends in September, less than half of what it was at its peak in 2004, according to new White House estimates.

It's also a gain over the $244 billion predicted by President Bush in February, but not as great an improvement as anticipated by other forecasters.

Bush planned to discuss the figures in an afternoon appearance as the White House's Office of Management and Budget as part of its midyear update of the budget picture.

The deficit last year was $248 billion and has closed in recent years due to impressive revenue growth from the healthy economy. Bush and Democrats in Congress have both promised to erase the deficit by 2012, though they have greatly divergent views on how to achieve the goal, with Bush and Republicans insisting on extension of his 2001 and 2003 tax cuts when they expire at the end of 2010.

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