The US Congressional Budget Office (CBO) said on Monday that US government budget-deficit picture turned brighter and estimated that red ink for the current fiscal year would drop to 331 billion dollars.

The new report by the nonpartisan CBO gave the latest proof that surging revenues and a steadily growing US economy are combining to bring the deficit down from a record high of 412 billion dollars posted in last fiscal year which ended on Sept. 30 of 2004.

The report is welcome news for President George W. Bush, who has seen the budget situation during his tenure deteriorate markedly from predictions of unending surpluses when he took office in January 2001.

"The CBO report confirms the dramatic improvement in the 2005 deficit picture that the Administration reported last month," said Scott Milburn a spokesman for the White House budget office. "A strong economy fueled by tax relief is generating stronger-than- projected revenues."

The White House forecasted a deficit of 333 billion dollars for this fiscal year which began from Oct. 1 of last year.

Source: Xinhua