Federal Budget Deficit Continues to Shrink

The new figures show the deficit for the budget year ending Sept. 30 will be $296 billion - much better than the $423 billion that Bush predicted in February and a slight improvement over 2005. (AP)

The projected shortfall is down from the $423 billion deficit the White House forecast five months ago and represents 2.3 percent of gross domestic product, according to the Office of Management and Budget. Last year's deficit was $318 billion. (Bloomberg)

``Tax cuts left nearly $1.1 trillion in the hands of American workers and families and small business owners,'' Bush said in announcing the OMB forecast today at the White House. ``They used this money to help fuel an economic resurgence.'' (President George Bush)