The Budget Deficit

"Here's one story you won't find in tomorrow's front pages: The US budget deficit is shrinking rapidly. Today's Treasury report on the nation's finances for December shows a fiscal 2005 year-to-date deficit that is already $11 billion less than last year's. After the first three months of the fiscal year beginning last October, cash outlays increased by 6.1% overall, while tax collections grew by 10.5%. Consequently, the 2005 deficit is on track to drop to $355 billion from $413 billion in FY 2004. At this pace the new year deficit as a fraction of projected GDP will descend to 2.9% compared to last year's deficit share of 3.6%. "PatrickRuffini.com

The growing economy is beginning to shrink the deficit. Now if Congress will only eliminate the "pork barrel" spending, we may make even more progress.