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U.S. FY 2022 budget deficit to shrink dramatically as tax revenues surge-CBO

WASHINGTON, May 25 (Reuters) - The U.S. budget deficit for fiscal 2022 will shrink to $1.036 trillion from $2.775 trillion in fiscal 2021 as a strong economic recovery from the COVID-19 pandemic produces a surge of tax receipts, the Congressional Budget Office said on Wednesday.

The CBO said in new economic and baseline budget forecasts based on current tax and spending laws that its fiscal 2022 deficit forecast is now $118 billion less than an estimate made last July. (Reporting by David Lawder; editing by Diane Craft)

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