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Skriven 2006-10-11 23:32:36 av Whitehouse Press (1:3634/12.0)
Ärende: Press Release (0610116) for Wed, 2006 Oct 11
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Fact Sheet: Economic Strength and Spending Restraint Drive Down Budget
Deficit
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For Immediate Release
Office of the Press Secretary
October 11, 2006

Fact Sheet: Economic Strength and Spending Restraint Drive Down Budget
Deficit


˙˙˙˙˙ President Bush Discusses the Economy and Budget ˙˙˙˙˙ In Focus:
Budget Management ˙˙˙˙˙ In Focus: Jobs _

Federal Government Succeeds In Cutting Deficit In Half Three Years Ahead of
Goal

Today, President Bush Announced That The Deficit Has Been Cut In Half 3
Years Ahead Of His 2009 Goal And That The FY2006 Budget Deficit Was $248
Billion. The President's pro-growth policies helped to strengthen our
economy and create 6.6 million jobs in the last three years. This strong
economic activity has generated historic revenue growth that has shrunk the
deficit. A continued commitment to spending restraint has also contributed
to deficit reduction.

The FY2006 Budget Deficit Was $248 Billion/1.9 Percent Of GDP, Down From An
Original February Projection Of $423 Billion/3.2 Percent Of GDP. At this
level, the deficit is 0.4 percent below the 40-year average of 2.3 percent
of GDP.

This Level Surpasses By $12 Billion 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.

Pro-Growth Policies Are Fueling A Robust Economy And Increasing Revenues

Tax Relief Is Spurring Economic Growth. Working with Congress, the
President doubled the child tax credit, reduced the marriage penalty, cut
taxes on capital gains and dividends, and reduced income taxes for every
American paying them. Tax relief brought an extra $2,500 to 44 million
American families with children. The President's tax relief continues to
help our economy grow faster than any other major developed country.
Sustaining this economic momentum requires making these tax cuts permanent.

A Strong Economy Has Led To Historic Revenue Growth. The President's
pro-growth policies have helped fuel economic activity that has produced
two years of record revenue growth.˙ FY2005 revenues were 14.5 percent
higher than the previous year and at $2.153 trillion were the largest in
history. This year's revenues of $2.407 trillion increased 11.8 percent
from FY2005 and September 15th's $71.8 billion in corporate receipts were
an all-time high.

Spending Restraint Works

The President Has Restrained Spending. Every year that the President has
been in office, he has reduced the growth of non-security discretionary
spending. Additionally, in FY2006, the President succeeded in holding the
growth in base discretionary funding to less than the rate of inflation.

The President Has Reduced Or Terminated Lower-Priority And Poor-Performing
Programs. The President's FY2007 Budget proposed to reduce or terminate
funding for 141 discretionary programs for a savings of $14.7 billion. This
builds on the President's success in FY2006 in which Congress enacted 89
proposed terminations and reductions for $6.48 billion in savings.

The President Needs The Line Item Veto To Help Eliminate Wasteful Spending.
The House of Representatives approved Line Item Veto legislation earlier
this year by a strong bipartisan majority, and the President calls on the
Senate to do the same. The Line Item Veto would be a tool to further
improve government transparency and accountability and ensure taxpayer
resources are spent wisely.

FY2006 ACTUAL RECEIPTS, OUTLAYS AND DEFICIT
(in billions of dollars)

˙

Receipts

Outlays

Surplus/Deficit (-)

FY2005 Actual

2,153

2,472

-319

FY2006 Estimates

˙

˙

˙

˙˙˙˙ Budget (2/06)

2,285

2,709

-423

˙˙˙˙ Mid-Session Review (7/06)

2,400

2,696

-296

˙˙˙˙ Actual (10/06)

2,407

2,654

-248

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