Bearable Budget Battle

The budget deficit is falling rapidly and is now projected to be $642 billion, or 4% of GDP, in FY 2013. It was projected to be $200 billion higher just three months ago. This improvement will delay the next debt ceiling brawl from June to November. And with election season already starting by then, expect substantially reduced political rancor. Despite the improvement, revenues will cover just 81% of federal outlays.

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