The Congressional Budget Office (CBO) released their deficit prediction today for fiscal year 2004, which ends September 30. The total number, $422 billion, will be a new all-time dollar record (not adjusted for inflation) but is $56 billion lower than the CBO predicted in January, thanks to better than expected revenue collection.

Although the figure is better than predicted earlier, the long-term deficit and debt predictions have worsened in the intervening months. The CBO now predicts in the next decade that the debt may climb by $2.3 trillion. This number is still low though, as the CBO is required by law to predict the administration's tax cuts will be phased out completely when they expire, and that the alternative minimum tax (AMT) will continue to generate large amounts of cash. Given the administration's push to renew the tax cuts and the large numbers of people who will begin to be affected by the AMT in the years ahead, it is unlikely revenue will be as high as the CBO is required to predict.

The full report is located here and is in .pdf format.