Budget

US Budget Deficit Shrinks

Faster than expected

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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.