Bush says federal budget deficit halved years ahead of schedule

U.S. President George W. Bush said Wednesday that his administration had achieved the goal of cutting the budget deficit in half years ahead of schedule.

A preliminary estimate released Wednesday by the Treasury Department showed that the government ran a budget deficit of 248 billion dollars in the 2006 fiscal year ended Sept. 30, down from the prior year's figure of 319 billion dollars.

"These numbers show that we have now achieved our goal of cutting the federal budget deficit in half, and we've done it three years ahead of schedule," Bush told a news conference held at White House.

"The budget numbers are proof that pro-growth economic policies work," he said.

"By restraining spending in Washington and allowing Americans to keep more of what they earn, the economy's creating jobs, reducing the deficit, and making our nation a more prosperous nation for all our citizens," the president added.

The shortfall of 248 billion dollars was the smallest budget deficit since a red ink of 157.8 billion dollars registered in 2002, which was the first deficit following four years of surpluses.

Also, the preliminary figure was better than the administration 's initial estimate of a deficit of 423 billion dollars that had been revised down to 296 billion dollars in July.

Bush in February 2004 set the goal of cutting budget deficit in half from a projected peak in fiscal 2004 of 521 billion dollars, or 4.5 percent of gross domestic product, by 2009.

In the 2004 fiscal year, the U.S. budget deficit hit an all- time high of 413 billion dollars.

Source: Xinhua