The White House has lowered projections for the federal budget deficit to $205 billion, from an earlier forecast of $244 billion by the Office of Management and Budget.

Last year, the budget deficit was $248 billion. President Bush has promised a balanced budget by 2012.
However, Democrats cite Bush's tax cuts for wiping out the budget surpluses he inherited when he took office in 2001.

Sen. Kent Conrad, D-N.D., chairman of the Senate Budget Committee Senate said in a statement that the president has, “increased spending by nearly 50 percent since taking office, while at the same time repeatedly cutting taxes primarily on the wealthiest. The result has been that the $5.6 trillion projected surplus he inherited has been wiped out. And debt has exploded on his watch — rising from $5.8 trillion in 2001 to approximately $9 trillion by the end of this year."

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