Federal Budget Thursday, Apr. 21, 2 P.M.

The federal budget is expected to post a deficit of $38 billion in March, says the MMS survey, nearly $6 billion less than the March, 1993, gap. That would mean that the deficit for the first half of the 1994 fiscal year stands $27 billion below the gap in the first half of 1993, when the deficit totaled $254.7 billion. At that rate, the 1994 shortfall will end up well below the Administration's estimate of $234.8 billion. Higher borrowing costs, reflecting rising interest rates, will add to this year's red ink, but faster-than-expected economic growth will more than cover that additional cost.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.