Budget deficit US drops!

The budget deficit in the US has dropped from 248 billion dollar in 2006 to 163 billion dollar in 2007. It's already the third year in a row that the deficit drops. The minister of finance, Henry Paulson, says that these figures show the remarkable strenght of the American economy.
He also says that by keeping the taxes low and public expenditure in line, economic growth can be maintained.
The deficit is not as big as the white house expected. A 244 billion deficit was expected. This good news can be allocated to a rise of 6.7 per cent of the revenues. While the expenditure only rose 2.8 per cent. This is the lowest rise of expenditure in over 10 years.

I was surprised by this rapid decrease of the budget deficit. And what a decrease it is! The deficit was almost cut in half.
Henry Paulson says that this shows the remarkable strenght of the American economy... . I agree that the American economy is strong and will fight for its survival. But these figures don't contradict with the fact that the American economy is in a slump.
At the other hand it is true that by keeping taxes low and public expenditure in line, economic growth can be maintained. The problem is that by keeping taxes low and expenditure in line, the revenues won't rise again... .

Thomas

source: http://www.tijd.be/nieuws/economie_financien/artikel.asp?Id=3273031