(Adds projections for coming quarter)
WASHINGTON, April 28 (Reuters) - The U.S. Treasury said on Monday it expects to pay down $78 billion in net marketable debt in the April-June quarter, a sign the improving economy is reducing the federal budget deficit.
Washington is still on track to run roughly a half trillion dollars into the red this year. While that is high by historical standards, annual deficits have fallen precipitously in recent years as the economy recovered from a deep recession.
The Treasury had previously forecast paying down $40 billion in debt this quarter.
The Congressional Budget Office, however, projects budget deficits will widen slightly relative to national economic output over most of the current decade's remaining years.