The federal deficit has plunged during the first nine months of the fiscal year, which ends Oct.1, as revenues sharply increased over the growth of spending.
According to the Treasury Department, the government had a surplus of $27.5 billion in June, the 8th largest surplus for the month ever. Last years' June numbers were a surplus of $20.5 billion.
With the huge surplus, the budget is down by 41.4 percent year-over-year, dropping to $121 billion from last year's $206.5 billion.
If Bush administration projections are accurate, the deficit by the end of the year will be about $205 billion, down from the original forecast in February of $244 
billion, which would confirm the larger-than-expected revenue increase.
President Bush took the time at a White House ceremony to say the data show his tax cuts and restraint on spending are working. He added that his tax cuts in 2001 and 2003 are what is fueling the strong increase in revenue.
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