The most recent projections for the budget deficit coming out of the Congressional Budget Office are showing a distinct and significant improvement in the country’s finances. Higher than expected tax revenues will help to reduce the deficit to only $642 billion this year, which is 4 percent of GDP. That amount turns out to be the lowest aggregate deficit in 15 years. It is also less than half the size of 2009’s deficit which was 10.1 percent of GDP.

Even more startling is the speed with which the improvement is advancing. The CBO has sliced $200 billion from its deficit projection for this year, just since February. The total reduction over the next ten years has been estimated to be $618 billion. The new figures have come to light in just the past three months.

The dramatic change is almost entirely due to higher than anticipated tax revenues. Individual income tax receipts climbed by 5 percent, or $69 billion. Corporate tax income are most likely going to be about 16 percent higher for a total of $40 billion more money for the government. Fannie Mae, the government mortgage bank, also supplied an additional $95 billion to the Treasury.