Federal deficits are projected to surge over the next decade, but not as much as officials predicted last summer, thanks to an improving economic outlook that is anticipated to cushion federal revenues.Federal debt, which reached 100% of gross domestic product in the last fiscal year, is expected to increase to a record 107% of economic output by 2031. The agency expects cumulative shortfalls over the next 10 years will total $12.6 trillion, 3% less than projected in September, the last time the agency released its expectations. The decline stems from stronger-than-expected economic activity , higher interest rates, which will boost federal tax revenue more than spending.Republicans in Congress who object to President Biden’s $1.9 trillion stimulus package have pointed to increasing budget shortfalls and debt as a reason to keep spending in check. They also argue the economy is already composed for stronger growth this year. Democrats, who control the House and Senate with slim majorities, are on track to approve the bill.