By ANDREW TAYLOR

(WASHINGTON, AP) – A new government estimate says the budget deficit for the current year will come in well below what was projected just a few months ago.

The Congressional Budget Office study predicts a 2013 budget deficit of $642 billion, more than $200 billion below its February estimate.

CBO says higher tax revenues and better-than-expected bailout repayments by mortgage giants Fannie Mae and Freddie Mac are the key reasons for the improved outlook.

The deficit picture is expected to continue to improve next year and beyond, with the 2015 deficit now projected at $378 billion, just 2.1 percent of the economy.