The Congressional Budget Office said the U.S. budget deficit for the fiscal year that ends Sept. 30 will be $200 billion less than the figure it projected just three months ago, as the recovering economy boosts government revenues. The shortfall will narrow to about $642 billion, 4% of the gross domestic product, the nonpartisan budget watchdog of Congress said. The agency expects the deficit to contract to 2.1% of GDP by 2015 and then increase through the rest of the decade.

Related Summaries