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Last Updated: Wednesday, 13 July, 2005, 16:17 GMT 17:17 UK
Bush predicts budget gap closing
George W Bush sees better budget times ahead
George W Bush :"There's some good news today"
US President George W Bush has said that the nation's large budget deficit will be $94bn (53bn) less in 2005 than originally projected.

The White House now sees a deficit of $333bn for the fiscal year to October, after the Office of Management and Budget's (OMB) "mid-session" update.

Mr Bush also said the government was still on track to cut the deficit in half by 2009.

The news came on the back of increased tax revenues in recent months.

In February, the administration had estimated a projected budget deficit of $427bn for 2005.

"There's some good news today, OMB is going to announce that the 2005 deficit is $94bn less than previously expected," Mr Bush said after holding a cabinet meeting.

"I told the Congress and told the country we'd cut the deficit in half by 2009. We're ahead of projections now," he continued.

Earlier this year, Federal Reserve chairman Alan Greenspan warned that unless the huge budget deficit was addressed it could have "severe" consequences.

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