The White House, President George W. Bush Click to print this document

For Immediate Release
Office of the Press Secretary
July 11, 2006

Fact Sheet: Strong Economic Growth and Fiscal Discipline Help Reduce Budget Deficit

Strong Economic Growth and Fiscal Discipline Help Reduce Budget Deficit
President's Goal to Cut Deficit in Half is Projected to be Met a Year Ahead of Schedule

Today, the Office of Management and Budget Reported the FY2006 Budget Deficit Is Forecast To Be 30 Percent Lower than the Forecast in February and the President's Goal to Halve the Deficit is on Track to be Met a Year Ahead of Schedule. The President's pro-growth policies have encouraged robust economic growth and job creation, thereby strengthening government revenues and helping to reduce the deficit. The new report estimates this year's deficit to be $296 billion or 2.3 percent of GDP. Projections now show the deficit will fall to $188 billion in 2008, or 1.3 percent of GDP, surpassing President Bush's original goal of cutting the deficit in half by FY2009 from its FY2004 projected peak of $521 billion, or 4.5 percent of GDP.

Economic Growth Generates Increased Tax Receipts and Dramatically Improves Budget Outlook

Spending Restraint Helps Reduce Budget Deficit

Unsustainable Growth in Entitlement Programs Poses Long-Term Threat to Budget

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