Deficit pegged at $250 billion

The deficit for the fiscal year that ended Saturday is $250 billion, according to a preliminary estimate announced Friday by the Congressional Budget Office.

The official fiscal 2006 figure will be released as early as Wednesday by the Treasury Department and the Office of Management and Budget, but the preliminary number is lower than CBO's August report predicting a deficit $10 billion higher.

A $250 billion deficit would mark a $68 billion improvement over last year's $318 billion recorded deficit. When measured as a percentage of the economy, the 2006 deficit would equal 1.9 percent, down from 2.6 percent last year.

CBO reported steady growth in corporate tax receipts fueled by higher profits as a reason for higher-than-expected revenues.

Republicans sought to tie the good news to the impact their domestic agenda has had on the economy, with House Budget Committee Chairman Jim Nussle, R-Iowa, crediting "a responsible budget blueprint and pro-growth policies."

But House Budget ranking member John Spratt, D-S.C., said it will still be among the largest deficits in history and a $486 billion drop from the last surplus recorded in fiscal 2000.

"Today's report is the latest reminder of how much work needs to be done to put our nation's fiscal house back in order," Spratt said.