The deficit is not shrinking, period. Deficit spending was to shrink with the new budget (of course this will make up for the shrinkage), but the deficit is still there and we are still paying out $300 billion a year to service the debt, almost all to foreigners. Hint, that's how the Japanese are funding their social security system.
Deficit spending this year will be near $400 billion, 80% financed by foreigners who require higher and higher interest rates..