In its analysis of President Bush's 2006 budget, the Congressional Budget Office projected the federal deficit would shrink to $332 billion -- versus $394 billion in 2005 -- but those estimates do not include the additional funding required for continued military operations in Afghanistan and Iraq. The CBO also projected that the under the president's policies the federal deficit would continue through the year 2015. Total revenues for the years 2006-2015 would be roughly $1.4 trillion. The office estimated the economic impact of the budget would be small, resulting in a lower economic output from 2006-2010 but somewhat higher in the period from 2011-2015. Other analysis of the budget included: o The transition to the system of Social Security private accounts as proposed by the president potentially could result in roughly $1 trillion in costs from the years 2009-2015, whereas Medicare spending for the 10-year period from 2005-2015 would be roughly $5 trillion. For a copy of the report go to www.CBO.gov

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