Washington (Aug. 29, 2002) -- The Congressional Budget Office said that under its new baseline projections, a decline in tax revenue and spending increases will produce a deficit of $157 billion in fiscal 2002, according to its budget and economic update.

The CBO predicted a "gradually declining series of deficits" through fiscal 2005. The agency did, however, project a surplus of $1 trillion for the period of 2003-2012.

However, most of that amount would be realized after 2010, when the tax cuts enacted as a result of the Economic Growth and Tax Relief Reconciliation Act of 2001 are scheduled to expire.

-- Electronic Accountant Newswire staff

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