US Budget Deficit Shrinks

Faster than expected

WASHINGTON, May 14 (UPI) -- The U.S. budget deficit is shrinking faster than thought, falling to $642 billion from the $845 billion projected in February, number-crunchers said Tuesday.

The Congressional Budget Office said the unanticipated $203 billion cut to the current-year shortfall -- a 24 percent drop from just three months ago -- comes from higher-than-expected individual and corporate tax payments and $95 billion in expected dividend payments from mortgage-finance companies Fannie Mae and Freddie Mac.