This report discusses the President's fiscal year (FY) 2007 budget (February 2006) included a revised FY2006 deficit estimate of $423 billion, $72 billion larger than its previous estimate (July 2005) and $53 billion larger than its original deficit estimate in February 2005.

Much higher than expected receipts reduced the estimated deficits for fiscal year 2006 in both the Administrations Mid-session review and in the Congressional Budget Office's The Budget and Economic Outlook: An Update. These were over $100 billion below the Administration's previous estimate and $70 billion below the Congressional Budget Office's previous baseline estimate. This report contains information on the background and analysis for the federal budget in the fiscal year 2006, the financial situation at that time, budgeting tools, budgetary actions, outlays, receipts, deficits, and related materials.