...whose numbers would you use? We've noted before (here, here, and here) OMB's propensity to make overly pessimistic projections of the deficit only to claim credit for "great improvements" when the actual deficit numbers are reported at the end of the fiscal year. Being the start of the fiscal year, it's time for the Administration to gaze upon its own unrealisitically high deficit projections and marvel at the reality of comparatively lower FY 2007's actual deficit. Treasury Secretary Henry M. Paulson, Jr.: This year's budget results demonstrate the remarkable strength of the U.S. economy. This strength has translated into record-breaking revenues flowing into the U.S. Treasury and a continued decline in the federal budget deficit. (emphasis mine) President Bush: You know, last February, it was projected that our deficit would be $244 billion, and today the Director informed us that the deficit -- actual deficit is $163 billion. In other words, as a result of the hard work of the American people, this economy is growing; the growing economy has yielded more tax revenues than anticipated. And because of fiscal restraint, those tax revenues went to reduce our deficit. (emphasis mine) Talk about the soft bigotry of low expectations. A Comparison of FY 2007 Deficit Projections (billions of dollars) Projection Date OMB (President's Budget) CBO Jan/Feb 244 172 July/Aug 205 158 Oct 163 161 Percent Change from Jan/Feb to October 50.0 6.8