The non-partisan Congressional Budget Office is predicting that the fiscal 2005 federal budget deficit will be much lower than projected.

The CBO's August update to the economic and budget outlook projected the deficit to total $331 billion in the fiscal year ending Sept. 30, MarketWatch reported Monday.

That's a drop from its March projection, when it forecast a $365 billion deficit for fiscal 2005.

The CBO credited surging tax receipts to the improved deficit picture.

(UPI)