Federal budget deficit may shrink all by itself.

Reports that for fiscal 1997, the budget deficit in the United States should decrease as a result of economic growth and soaring stock prices, which will generate higher tax revenues and lower welfare costs. Projections of Joel Prakken, chief economist at Macroeconomic Advisers in Saint Louis, Missouri; Comments from Robert Greenstein, director of the Center on Budget and Policy Priorities; Expectations of the American economy for 1997.